10TH COLLECTIVE AGREEMENT BETWEEN ETHIOPIAN AIRLINES ENTERPRISE AND ETHIOPIAN AIRLINES BASIC TRADE UNION

This Collective Agreement is signed on this 18th of May, 2012 by and between Ethiopian Airlines Enterprise, established in accordance with Ethiopian Laws hereinafter referred to as ' The Undertaking'

And

Ethiopian Airlines Basic Trade Union established in accordance with the Labor Proclamation No. 377/2003 (as amended), hereinafter referred to as ' The Union'.

Short Title

This Collective Agreement shall be shortly cited as "the 10th Collective Agreement". Definitions

Unless the content requires otherwise, in this Collective Agreement terms are defined as follows:-

A."Proclamation" means the Labor Proclamations No. 377/2003, No. 494/2006 and the amendments thereto .

B.Internal Rules' or 'Company Policy of the Undertaking' means the working rules and internal policies issued both for administrative and operations that the Undertaking issues from time to time to make provision to determine working schedules , rest/leave periods, salary payment, performance measurement methods /system, Occupational safety and Health Protection measures accident prevention, disciplinary rules and their implementation as well as other rules on terms of employment and working conditions in accordance with the Proclamation and other relevant laws;

C."Employee" means in line with Article 4 of the Labor Proclamation No. 377/2003 any physical person who has an employment relations with the Undertaking for indefinite period based on a contract of employment and it does not include the members of the Management excluded from the scope of this Agreement per Article 2.1.1 of this Agreement;

D."The Undertaking" means the Ethiopian Airlines Enterprise and includes its Legal Authorities, agents, officials, Divisions and branches.

E."Union" means the duly registered and accredited Ethiopian Airlines Basic Trade Union and includes the lawful executives/leaders of the Union;

F."Employment Contract" includes the employment letter issued for an employee who is covered under this Collective Agreement at the time of his employment, his job description and its amendments and comprises this agreement;

G."Agreement" means this 10th Collective Agreement and its duly registered amendments and as the case may be it includes the provisions that the Undertaking and the Union issue with their mutual agreement;

H."Plan" means the annual plan and long term strategic plan and vision of the Undertaking;

I."Premises of the Undertaking" means the buildings, aircrafts,, vehicles, ramp and apron areas, work places and places where employees will be stationed due to the nature of their work or where the Undertaking works or places of work or any owned or rented property or place that the Undertaking provides for the employees through ownership or rent/lease;

Chapter One General Provisions

Article 1: Objectives of the Collective Agreement

1.1

The objective of this Collective Agreement is in order to ensure that the industrial peace is maintained through fostering long lasting & smooth relationship among the Undertaking, its employees and the Labor Union and to avail better and conducive working conditions accepted and mutually agreed upon both by the Undertaking and the employees.

The Union understands that the Undertaking is working in a stiff competition and highly regulated environment that it needs to establish working rules and procedures that enable it to strengthen its existing capacity in such highly competitive industry and remain competitive. Accordingly, they have also agreed to work together in order to achieve such objective of the Undertaking.

1.2

Without prejudice to the generality of the expression in Article 1. 1 above, the Agreement shall have the following specific objectives:-

1.2.1. In order that industrial peace is ensured in the Undertaking, that sound business relations are conducted in good faith, efforts are exerted so that employees be ware of their rights and obligations in order to discharge their obligations in unity by strengthening their ties.

1.2.2. To enable the employee discharge his duties in compliance with the accepted code of conduct, ethical rules , to reinforce his will and dedication to work, to enhance his productivity and to enable both the Undertaking and the Labor Union encourage and appreciate the employee;

1.2.3. Knowing that the wellbeing of its employees is the essence of the Undertaking, is existence and profitability, to protect his health, to develop his intellectual and physical well being, to make his livelihood secured by providing a reasonable remuneration and compensation for his work that ensures his sound conditions, to assert his basic human rights and to enable him to take part in the Undertaking's Management;

1.2.4. To ensure the continued existence of the Undertaking and to enhance its standard in the growing air transport market competition.

1.2.5 To enable the air transport service of the Undertaking to be safe and efficient, secured/safe, competent and risk free/free of accidents; and

1.2.6 To capacitate the Undertaking to provide efficient, integrated and modern service to its customers and to establish conducive working and service providing conditions to achieve the basic objectives for which the Undertaking is established.

Article 2 Status and Scope of Applicability of the Agreement

2.1

Employees Covered by the Agreement

2.1.1 This Collective Agreement shall be applicable to and binding upon all employees of the Undertaking employed for indefinite period excluding 'Management Employees' whose positions are listed in Appendix III of this Agreement and so defined under the Proclamation.

2.1.2 .This Agreement shall be considered as the integral part of the employment contract concluded individually and collectively between the Undertaking and those employees specified under Sub-article (1) above who are employed by the Undertaking for indefinite period..

Article 3 Rights and Duties of the Parties

3.1

Rights & Duties of the Undertaking

3.1.1 Prerogatives of the Undertaking:

1. Except as is otherwise clearly specified in this Collective Agreement, in addition to the rights that are reserved to it under the relevant laws of the country and other relevant rules and regulations, the Undertaking reserves all the rights to plan, direct, control, and manage its Operations , hire, administer, , promote, transfer, demote, discipline and lay off, or suspend and dismiss its employees whenever it is found necessary and in accordance with the relevant laws through its competent officials, authorities or agents or executives and managerial employees.

2. The right to determine, issue, and establish, modify, assign, change or revoke its policies and procedures and internal rules and regulations, the right to determine the amount of salary or any other payments is reserved to the Undertaking. However, where the Union believes that the changes or proposed changes are against the rights and benefits of the employees explicitly specified in this Agreement, the Union may discuss with the Undertaking.

3.1.2 Duties of the Undertaking:

In addition to the duties stipulated by law, the Undertaking shall have the following duties: -

1. To provide equipments/tools that are required by and for the employee's work, necessary raw materials and safety equipments;

2. To observe and abide by the provisions of this Collective Agreement, its work rules and the internal regulations and policies that it issues from time to time in accordance with the law;

3. To take all the necessary measures to protect the safety and occupational health of its employees in order to prevent them from occupational accidents and to follow the standards and directives issued by the competent/relevant authorities in relation to such measures;

4. To determine job title/grade and salary scale for each position and to design and issue job description to the employees periodically;

5. To ensure that the provisions contained in the internal rules and policies of the Undertaking don't affect the rights, benefits and working conditions reserved for the employee by this Collective Agreement or the Proclamations as well as to follow and observe those stipulated in this Agreement, the Proclamation and other labor laws and regulations;

7. To provide uniforms free of charge to employees required to wear uniforms in accordance with the Undertaking's internal regulations or policy;

8. To bear the cost for laundry of coveralls and shop coats so long as the employee keeps the coverall and shop coat provided to him by the Undertaking;

9. When training is required to introduce new and modern technology, to provide the necessary training to employees related to the work and/or employees who give training to others;

10. To provide Safety equipments which are not included in Article 3.1.2 (6) according to the Company's Safety Management Policy Manuals;

11. To deduct Union membership dues from employee's monthly salary and transfer same to the account of the Union when so authorized in writing by the employee. The Undertaking shall cease making such deduction and shall thereafter pay the employee's salary to him in full only when so requested by the employee or through the Union;

12. To prepare appropriate places and notice boards on which the Union can post its lawful notices, bulletins, and slogans;

13. To give 15 days advance notice to the concerned employee regarding any deduction from his salary except where the deduction is to be made pursuant to Court order or at the request of the employee himself;

14. To avail office necessary for the use of the Union;

15. The Undertaking shall not:-

A. Permit any act which directly or indirectly jeopardizes or restricts an employee's legal rights, privileges and benefits;

B. Take any reprisals against employees or their representatives preventing them from requesting or having requested the help from of the competent responsible authorities in securing their legal rights, privileges, benefits or any interests;

C .Interfere with or restrain, coerce or discriminate against employees or Officers of the Union because of membership in or for engaging in lawful activities on behalf of the Union;

D. Charge and/ or penalize an employee more than once for the same offence;

E. Impose more than one disciplinary measure for those offences committed to achieve one purpose;

F. Charge employees in group for any offence, unless it can be proved that the group committed the offence;

G. Resort to such actions as physical attack, assault, insult or threat through its officers;

H. Transfer an employee from section to section with the intention of hindering or preventing his future progress;

I. Issue or pass orders or instructions which are outside of the employee's normal duties and which are not within his capabilities or such orders of instructions in violation of the Undertaking's written policies or regulations or issue orders which are imminently dangerous to life, body or the property of the Undertaking or of its employees.

16. The Undertaking shall distribute the text of Collective agreement for its employees to help them to be well aware of their rights and duties under the Agreement.

3.2.

Rights and Duties of Employees

3.2.1 Rights Reserved for Employees:-

Save to the rights outlined under the law, employees of the Undertaking shall have the following rights:-

1. The right to lodge his complaints/grievances to the Undertaking individually in person or in groups through the Union;

2. Without prejudice to the provisions of the Agreement and provided there is a vacant position, the right to request for promotion, lateral transfer or transfer to a lower grade job classification. However, the Undertaking shall not be obliged to perform per his request;

3. An employee may not normally be required to work outside his job description. He may be required to discharge assigned duties and responsibilities entrusted to him by his immediate supervisor any job related to the work. However, before he is assigned to do beyond or different from his job description, he shall be provided with the revised or updated job description. Same shall be filed in his Personal File.

4. An employee who feels that he is either underpaid or overloaded with assignment may submit to the Union his request for re - evaluation with adequate justification. The Union may discuss same with the Undertaking in accordance with Article 4 of this Agreement.

5. Employees of the Undertaking shall have the right to participate in areas that relate to the planning and evaluation of the performance of the Undertaking and such areas that involve staff engagement either directly or through their representatives and express his opinions verbally or in writing;

6. Employees shall have the right to be represented by their Union. Their right to participate in the functions of the Union in accordance with the internal statute of the Union, to freely discuss any matters concerning labor conditions with the officers of the Union and to pursue any disputes with the Union or before the Ministry of Labor & Social Affairs (MOLSA) or any competent third party as agreed between the Undertaking and the Union or present before a court of law.

3.2.2 Duties of Employees:-

Notwithstanding to the duties of employees under the law, each employee shall have the duty to:-

1. Abide by and fully observe the provisions of this Agreement, the Proclamation and other labour laws, the Undertakings policy rules and regulations, his contract of employment and job descriptions, and those matters outlined under the work rules and standard procedures issued by the Undertaking in relation to his job;

2. Carry out his assignments or instructions and devote his full energy & ability to the performance of the duties he is employed for with vigilance and caution, to enhance the Undertaking's output and productivity;

3. Conduct himself in a manner which will gain respect and prestige to the Undertaking and refrain from acts contrary to that while on duty or in Company's Uniform;

4. Efficiently and timely carry out to the limits of his capabilities all assignments or instructions which are within his normal duties or those orders relating to his job descriptions or any job in relation to his work as provided by his immediate supervisor;

5. Duly care for and treat the customers of the Airline the way they deserve, act in full cognizance of customer service as the cornerstone for the existence of the Undertaking and provide efficient service to the customers respectfully in relation to his daily activity;

6. Refrain himself from attempting or committing any sexual harassment acts against his workmates or customers or clients of the Undertaking;

7. Undergo periodic medical examination and undertake preventive medical and safety measures as required by the Undertaking, at the expense of the Undertaking;

8. Refrain from deliberate or negligent act which might endanger his own life or safety, the safety of his fellow employees or other persons;

9. In accordance with the instructions of the competent employees or authorities of the Undertaking, render assistance whenever required in the event an accident or imminent danger imperils the machinery, equipment, plant or other interests of the Undertaking or the persons or interests of his fellow employees or passengers onboard any aircraft provided it is within his ability and provided that this entails no danger or loss to him, his family or property;

10. Upon observing or apprehending or catching red- handed any theft, misappropriation, embezzlement or misuse of the funds or property of the Undertaking, immediately report the fact to the appropriate authorities of the Undertaking or to its Security Offices. However, where such reporting to the Undertaking's authorities is not possible and where the nature of the case requires immediate attention, it shall be reported to the appropriate government or public authority competent at the locality;

1 1. Any employee shall refrain himself from doing such acts prohibited under the Proclamation, this Agreement or the internal Policy and regulations of the Undertaking. In particular, no employee shall:

(a) remove from the Undertaking's premises or make use for himself or a third party, any property or item belonging to or found in the premises of the Undertaking, without prior permission from the competent authorities of the Undertaking;

(b) present himself for duty in a condition which disturbs or inconveniences other employees on duty, or in a condition which may create harm or distraction, or in any self induced negative condition;

(c) Threaten, insult, physically attack or assault any individual within the Undertaking's premises;

(d) Violate or disregard the policies, rules and regulations and procedures of the Undertaking or the obligations established in this Agreement;

(e) utilize for self or in any manner prejudicial to the Airline any job- related company secrets, or company manuals relating to flights operations and aircraft maintenance, or technical regulations which he had the privilege to access in discharge of his duties; nor shall he disclose any data or company secrets relating either to the Airline or its customers unless required under the pertinent authorizes competent under the law.

3.3

Rights and Duties of the Union and its the Management of the Undertaking

3.3.1Rights Reserved for the Union

1. The Union reserves its legal right to discuss labor matters with the Undertaking in accordance with the procedures stipulated under the Law, regulations and this Agreement.

2. The Union shall be able to participate in the management of the Undertaking in the manner as stipulated in this Agreement.

3. Only the leaders of the Union who are authorized to do so as per the internal regulations of the Union can take part and involve in Collective bargaining process of a Collective Agreement from the employees' side.

4. Except for the Executive Officers, Members of the Council, shop stewards and Members of the Audit Committee of the Union, no other employee may exercise such acts or rights provided to the Union under the Proclamation or this Agreement.

3.3.2 Duties of the Union

The Union shall:-

1. Observe the internal Policies and regulations of the Undertaking, the Proclamation and other rules and regulations on labor administration and this Agreement;

2. Prevent all acts which are prohibited under the Proclamation or those acts which are against its objectives or its internal statutes from happening and do whatever is necessary to prevent the occurrence of such acts in consultation with the Undertaking; 

3. Endeavour to orient and make its members aware and observant of the basic principles of the Proclamation, labor rules and regulations, standards and the provisions of this Agreement;

4. Take the initiative to generate rules and policies that concern the Undertaking and the staff and propose areas for improvement;

5. Cooperate and partnership with the Undertaking, in accordance with the law, on all areas that would help improve the growth and profitability of the Undertaking and the occupational health and working conditions, share ideas with the Undertaking on areas that would help create conducive working relationship between the Undertaking and its employees; and

6. Forward the list of all members of the Executive Committee, the Council and shop stewards of the Union to the Undertaking in writing.

3.3.3 Areas for Union's Participation

A) The Union shall participate in the following Management activities as outlined in the Agreement.

1) On internal job openings that the Undertaking opts to make them vacant and open for bid for its employees; and

2) In Employees' Discipline Committee.

B) The Union will be able to participate on such areas which are not related to management of the Undertaking and matters concerning social activities in accordance with the agreement to be reached with the Undertaking depending on the necessity of the case.

Article 4: Joint Consultation and Bilateral Relations

4.1

Consultation Meetings/Social Dialogue

4.1.1 The purpose of joint consultation is to further industrial harmony and foster good relationship between the Undertaking and the Union with a view to increasing productivity of the staff and the Airline.

4.1.2 Regular Meetings: The Undertaking and the Union may meet when necessary at the request of either party, on the last Thursday of each month to consult on matters pertaining to interpretation of this Agreement, the Undertaking's policies, rules and regulations, or Customary practices or other matters as affecting several employees collectively. If the last Thursday falls on a weekend or a Holiday, the meeting will be held on the next business day. Either party may not ask for postponement more than once. (Except collective ones, individual grievances shall not be discussed at such meetings).

4.2

Extraordinary/Special Meetings

4.2.1 Five (5) extraordinary meetings may be called by either party each year to consider urgent matters which require joint attention prior to the holding of the next monthly meeting. Additional extraordinary meetings may be called as the need arises when agreed upon by both parties.

4.2.2 The date of the meeting shall be fixed by mutual agreement of the two parties.

4.2.3 All such meetings shall be attended by officers who are in a position to take immediate and effective decision on items of the agenda submitted by either party.

4.2.4 Not more than three representatives of the Undertaking and three officers of the Union should attend such meetings, However, up to ten officers of the

Union can attend the meeting by having regard to the importance and weight of the agenda of the meeting.

4.2.5 Agenda items shall be exchanged at least one (1) week in advance. Items not covered by the agenda shall not be discussed at such meetings except by agreement of both parties.

4.2.6 Either party may, when necessary, be accompanied by its legal advisors, or call witnesses or produce evidences.

4.2.7 Meetings adjourned before covering agenda items shall be continued the next day.

4.2.8 Minutes of the discussion, accepted resolutions, decisions and/or agreements shall be recorded either by the Undertaking or the Union as appropriate and be made ready within five (5) working days for initial by both parties.

4.2.9 Agreements reached at such meeting shall be effected up on signature by the two parties. Where, however, the agreement repeals, amends or creates new employment conditions, it shall be effected after registration by the Ministry of Labor and Social Affairs (MOLSA)_and it shall form additional part of this Agreement.

4.2.10 The meeting procedure of ordinary meetings shall be same as specified under Articles 4.2.1 to 4.2.9 above.

4.3

Bilateral Relations:

The Union shall communicate with the Undertaking through the Corporate Human Resources Management Division in it all correspondences. The-Undertaking shall also communicate with the Union through its Corporate Human Resources Management Division. . However, in case the Union finds any matters that need the attention of the CEO, the Union may directly communicate in correspondence with the CEO.

Chapter Two Working Conditions

5.2

Any employee can resign at any time during his probation period without giving notice to the Undertaking.

5.3

Except for the express provisions as stipulated in this Agreement, the law and policy of the Undertaking, the conditions of this Collective Agreement are not applicable to any employee who is on probation period.

6.2

Off-Duty Breaks (Time-Offs)

A. Employees who work in the regular working hours of the day, except where the nature/condition of the work requires otherwise, shall be entitled for 15 minutes off-duty break before the afternoon, one full hour for lunch and 15 minutes break in the afternoon.

B. For any shift work, the off-duty break to be given shall not be totally more than 30 minutes divided into two off-duty breaks.

C. The off-duty breaks or lunch or dinner breaks shall be given for employees on a staggered basis and in turns as per the schedule to be issued by the Undertaking for every Division.

D. Where the Undertaking requires an employee to work during his lunch or dinner break time and where the employee spent on duty during such break times, the Undertaking shall grant the corresponding break times for lunch or dinner and prepare the food or facility as equally as the other workers have enjoyed.

6.3

Any worker who is required/assigned to work in excess of the regular daily working hours or the weekly working hours distributed in line with Article 6.1. (4) shall be entitled to get 15 minutes off-duty break/rest time.

Article 7 Shift works

7.1

An employee shall be required to work in all the three regular shifts of the Undertaking during the day, evening or night shifts as per the schedule of the Undertaking and as shown under Article 6 of this Agreement.

7.2

Unless necessitated due to the nature of the operation of the Undertaking, no employee shall be scheduled to work in any one of the day, evening or night shifts for more than one month (thirty days at a time). In case of emergency or compelling circumstances, however, any employee who is working in the night shift shall not be required to work for more than one additional schedule. Where a shift schedule change is to be made, the sequence of shifts/shift pattern (day-evening-night) shall be observed/maintained.

7.3

The beginning of regular working hours for employees working on shifts shall be the hour they start their work in the particular shift. The applicable shift premium shall be calculated based on the time the employee started his work in the concerned shift.

7.4

For the purpose of calculating shift premium payments, the starting time of shift work schedules shall be considered to be as shown below:-

Day shiftFrom 06:00 A.M (in the morning)

Evening shiftFrom 05:00 P.M

Night shiftFrom 0:00 A.M (mid night)

7.5

Where an employee who is assigned on shift works changes his shift or takes his day off, the rest time of the employee shall be counted from 16 hours after he completed working the normal working hours he was assigned to work on the day.

7.6

For employees who work during the normal office hours only, their rest days of the week shall be counted/started as per the Proclamation.

7.7

An employee who reported to carry out his normal duties either in normal office hours or normal shift works allocated for eight hours, unless the shift schedule is divided into two or distributed, shall be considered as if he has worked for eight hours whether the Undertaking occupies him to work eight hours or less. However, the Undertaking shall provide the employee transportation service to and from place of work in those shifts where the eight (8) hours schedule is split into two.

7.8

So long as it doesn't affect the business operation of the Undertaking or result in any additional cost to the Undertaking, shift workers who are holding equal positions in job grades can exchange their shift schedule to each other by informing and securing the prior approval of their immediate supervisor.

7.9

Employees working in the evening shift shall be given one hour as dinner break before 09:00 P.M.

7.10

Evening and Night Shift Premium/Allowance

A.S hift Premium shall be paid for employees who are assigned and work in the evening or the night shift only as shown herein below.

Job Grade	Evening shift	Night Shift
1-4	Birr 2.40 per hour	Birr 2.70 per hour
5-9 and 30-33	Birr 3.20 Per hour	Birr 3.55 per hour
10-17 and more than 34	Birr 3.80 per hour	Birr 4.20 per hour

B. Where an employee who started working in the evening shift continues working in the night shift, the shift allowance of such employee shall be as per the rate specified for the shift he worked longer .

C. In case an employee who started working in the night shift continues working in the day shift, the shift allowance of the employee shall be calculated at the rate of the night shift for the total number of hours he worked.

D. Employees who work overtime during shift work hours shall be entitled to get the applicable shift allowance pay in addition to the overtime pay for the shift in which overtime is worked.

Article 8 Overtime Work

8.1

Its Scope & Employees Entitled For Overtime Pay

1. "Overtime Work" shall mean the actual time worked in excess of the regular working hour as defined in Article 6.1 above or the average eighty (80) hours distributed for two weeks' period.

2. Overtime work shall be authorized only under the following conditions and as per clear instruction of a competent agent of the Undertaking. The overtime work order and authorization shall be equally distributed among those employees that are competent to do the job and the record of which shall be maintained properly.

3. Overtime pay to be paid in accordance with this Article shall not be applicable to the cockpit crew and cabin crew members. In addition, except Cabin Crew and Cock-Pit Crew, no employee shall be entitled to overtime pay for business travel time either by air or by any other means of transportation.

4. Where an employee is required to return from abroad on his day-off while on the Undertaking's business spending more than 8 hours flight time and where the next day is his working day, his arrival date shall be considered as his day off. Again, where an employee is required to travel on his day off for company business, he shall be given a compensating time-off for the first day only.

5. An employee who leaves after carrying out his work on night shift shall not be required work overtime. However,, where the employee is required to work on two consecutive shifts due to reasons beyond control and under the instructions of the Undertaking, he shall be given commensurate rest /day-off on the next day in addition to the overtime pay for the excess hours he worked for.

8.2.

Conditions for Overtime Work

1 . The Undertaking has the right to require any employee to work an overtime work under the following conditions:-

a) for any urgent work the Undertaking requires to do; or

b) where the Undertaking has no option to get the work done; or

c) where accident or imminent danger imperils or risk becomes imminent; or

d) for any reasons or factors beyond control or on any uninterruptible and continuous jobs or for replacement of employees who are on leave or away from work for various reasons;

8.3.

e) An employee assigned to work on eve which the Company celebrates per Policy, shall be paid overtime at holiday rate.

2. Overtime pay earned during the first fifteen (15) days of any month shall be paid with the regular salary for said month. Overtime pay earned thereafter during said month shall be paid with the salary of the following month.

3. If the employee requests and where the Undertaking agrees, overtime work performed may be compensated by time-off.

4. An employee called from his home for overtime work shall be credited for the actual hours he worked or for a minimum of five (5) hours whichever is longer/favorable.

Article 10 Leave

10.1

Definition

10.1.1 “Leave" shall mean an approved or excused absence from work whether with or without pay for some limited time and it includes various leaves that are provided under this Agreement, the law or internal policy of the Undertaking.

10.1.2 For the purpose of calculating annual leave Saturdays, Sundays (weekly rest days of the employee) and public holidays enumerated under Article 10.2 below shall not be counted.

10.2

n) Holidays proclaimed as celebration days by the Federal Government or Regional States under the relevant proclamation, directive and public announcement shall be considered as holidays for the concerned employees of the Undertaking.

10.2.2 Except those enumerated in sub-article. 2.1 above, where emergency holidays not recorded in the public calendar occur and where the Undertaking has not announced such as holiday, employees are required to be present at their regular work places.

10.2.3 If employees are assigned to work under conditions shown in sub-article 2.2 above, the Undertaking shall grant payment for such employees on duty at the hourly rate of holiday payment. Nevertheless, if employees are not assigned on duty, the Undertaking shall provide transport services to return them to their area of residence in similar way it does to day shift workers.

10.3

Annual Leave

10.3.1 General

1. An employee shall be entitled to uninterrupted annual leave with pay in the following manner based on the schedule to be set as convenient to the Undertaking and the employee.

2. For the purpose of annual leave calculation, the annual leave period shall be counted from January 1st through December 31th.

3. Subject to the provision in sub-Article 2 above, the annual leave period can be changed in the future based upon the mutual agreement of the Union and the Undertaking in order to correlate the period with the budget year/ fiscal period of the Undertaking.

10.3.3 Procedure for Granting Annual Leave :

1. An employee shall be entitled to take his first annual leave after 12 months service in the year and be entitled for leave afterwards. Except for emergency cases, a new employee shall be eligible for annual leave only after providing three (3) consecutive months of service to the Undertaking. .

2. Annual can be given based on the undertaking's plan, upon a year and considering the inters of both the employee and the undertaking. However, if the service period of an employee is below a year, he shall be given/entitled to annual leave at the end of his service year proportional to his service period.

3. An employee shall utilize his accrued annual leave in the year next to which his annual leave is accumulated.

4. An employee shall be entitled for annual leave as per the provision of this Collective Agreement, and such leaves shall be granted based on the activity plan of the Undertaking.

1. By the end of every October, the employee shall be entitled to submit written proposal, showing his three (3) choices regarding the time he plans to take annual leave, to his Immediate Supervisor. And his Supervisor shall have one of the choices approved and to be in effect by him considering both the employee's interest and the operation of the Undertaking in every November. The approved annual leave schedule shall be attached to personal file of the employee and be kept at the Department. . The program shall be communicated to the employee upon its approval in any convenient means of communication.

2. The employee's first choice will be respected provided the schedule of the operation permits. If, however, the choice of the employee conflicts with other employees' choices under the same Supervisor, the employee with higher seniority will be given priority. Where decision cannot be made on the basis of seniority, the order of registration number shall be used to decide.

3. The Undertaking shall make endeavour to release the employee to timely take his annual leave as much as possible. However, incase annual leave of an employee is postponed due to work load, the employee shall take his annual leave at his first choice in the following year without being affected by seniority.

10.3.5 Utilization. Accrual and postponement of Annual Leaves

1. The Undertaking shall make the employee timely take his annual leave as much as possible.

2. Annual leave shall accrue for the calendar month in which employee worked and received pay and it shall be taken during the year following the year in which earned.

3. Save to the provision specified otherwise, where an employee requests to take his annual leave in part and where the Undertaking agrees, the leave can be granted by dividing into two.

4. The Undertaking can postpone the annual leave period of the employee upon the employee's request and its agreement or where the operation necessitates to do so. However, where it needs to postpone the employee's annual leave period due to operational requirements or workloads, it should clearly notify the concerned employee at least fifteen (15) days in advance.

5. The annual leave that was postponed in any given year in any way can't be extended for more than two consecutive years.

10.3.6 Payments related to Employees on Annual Leave

1. An Employee going on annual leave shall, if the so requests, be paid his salary consisting of the days he has worked for plus the period of leave.

2. The amount of salary to be effected for an employee who is on annual leave shall be equal to the amount that he should earn while on work.

3. A terminated employee or an employee who resigns with the consent of the Undertaking or an employee who is pensioned shall be entitled to payment in lieu of annual leave accrued and un- utilized up to the date of termination or resignation, computed on the basis of the employee's current salary as follows:

In Lieu of Vacation payment = $\frac{\mathrm{Annualleavedays}\mathrm{Xhismonthly}\mathrm{salary}}{22}$

1. Accrued annual leave shall not be granted in anticipation of a heavy work load in a future period.

2. An employee shall not be forced to take his annual leave ahead of his scheduled time unless he is notified five (5) weeks in advance or he agrees to do so.

3. If an employee on annual leave is hospitalized or is ordered to be treated home

due to shortage of hospital bed, the time required for such hospitalization or treatment shall be considered as sick leave and shall not be deducted from his annual leave.

4. Notwithstanding the provisions stipulated on sick leave, an employee domiciled

in Ethiopia and not authorized by a Medical Board in Ethiopia to be treated abroad, the sick leave received from abroad shall be counted as other leave such as leave without pay, not as sick leave. However, if the employee is hospitalized, he may be granted sick leave in accordance with provisions in Article 10.4.8 of this Agreement.

5. If an employee is granted sick leave before he commences utilizing his annual leave, he shall not be required to utilize his annual leave before he fully utilizes his sick leave. He will, however, utilize his annual leave as soon as he finishes his sick leave.

6. When an employee meets an emergency as determined by his supervisor, he shall given the days necessary to meet the said emergency which will be deducted his accrued annual leave. However, this provision does not apply to Cabin Crew Members.

7. If a female employee gives birth while on annual leave, she shall be entitled to a maternity leave commencing from the date of delivery. She shall resume her work after she exhausts her interrupted annual leave.

1. No employee shall be called back to work before exhausting the annual leave he started to take.

2. In case of any unforeseeable circumstances where the Undertaking is forced to call an employee back to work while he is on annual leave, the Undertaking reserves the right to call him back; and the employee shall be duty bound to report back to work.

3. Where the Undertaking can't grant the annual leave unused by the employee when reporting back to work excluding the time he took in travel, the Undertaking may give him his remaining annual leave by converting into cash.

4. The Undertaking shall refund the employee with the cost of travel and perdiem that are incurred by the employee as a result of his being recalled to report back to work.

10.4

Sick Leave

1. An employee who has completed his probation period shall be entitled to sick leave as per this Agreement for any illness or accident not related to his work.

2. Absence due to illness shall be reported by the employee to the Undertaking's Medical Services and his immediate Supervisor through any available means of communication unless it is beyond his control, within 24 hours, where there is a doctor designated by the Undertaking or 48 hours from a location where there is no doctor designated or where there is not adequate communication.

3. An employee who is sick and seeks to visit the Undertaking's Medical Services will do so at any time of the day in accordance with the procedures set by the Medical Service Department. If the number of employees needing to see the doctor is in excess of what the doctors can handle, the employee shall be sent to a hospital.

4. The time that the employee takes to visit the Undertaking's doctor shall not be considered as sick leave. However, the time spent to visit another doctor as referred by the Undertaking's Doctor shall be considered as paid sick leave.

5. An employee who becomes sick at any time when the Undertaking's doctor is not available will be sent to a hospital or to a clinic with which the Undertaking has credit arrangement, by securing a credit letter from the Undertaking's Medical Services. Where, however, the case is an emergency, the employee may visit clinics or hospitals designated by the Undertaking by showing his company ID Card. However, the medical expenses so incurred by the employee will not be refunded to him if the Undertaking proves that the case was not an emergency.

6. An employee who is granted sick leave from a medical institution designated by the Undertaking or who is discharged from hospital must submit or send the sick leave certificate or other medical reports to the Undertaking's Medical Services within 5 days of receipt, after the lapse of which time the certificate or report shall not be acceptable.

7. A report of physical examination or a statement attesting to the employee's fitness for work must be obtained from the Undertaking's doctor prior to the employee's return to work. If the report is obtained from another doctor designated by the Undertaking, it shall be approved by the Undertaking's Doctor.

10.5

3. Sickness arising out of pregnancy will be treated in accordance with the Medical Insurance Scheme of the Undertaking.

10.6

Mourning Leave

10.6.1 Grounds for Leave

1. When the employee's biological father or mother, husband, wife, child, adopted child, brother or sister dies, the employee shall be granted 3 days leave or if the burial takes place on the next day he will be granted 4 days mourning leave with pay as from the day of the death.

2. In the case of death of grandparent, step father, step mother, mother-in-law, or father-in-law, foster parents, uncle or aunt, two (2) days mourning leave shall be granted; and if the burial takes place on the next day, he shall be granted three (3) days mourning leave with pay as of the date such relative has died. The mourning leave granted under this provision shall not be more than Seven (7) days per year.

3. In the case of the death of an employee's niece, nephew, sister-in-law, brother- in-law, and first cousin, an employee shall be granted two (2) days deductible from his annual leave. However, the employee shall be granted compensatory working time without overtime pay provided that there is an overtime work to be done in his Section.

4. The employee shall be granted by his supervisor not less than two (2) days from his accrued leave, in excess of the applicable mourning leave, for transportation to and from the place of the occurrence of death if the situation warrants such a leave compensatory time off may be granted per sub article (3) above.

5. In the case of death of any other relative or friend, an employee shall be granted by the supervisor up to eight (8) hours leave deductible from his accrued annual leave or compensatory time-off per sub article (3) above to attend the funeral.

10.7

Leave of Absence without Pay

10.7.1 Leave to be Granted for Various Purposes

1. An employee confronted with any of the affairs mentioned under Article 83(1) and (2) of Proclamation No. 377/2003 shall be granted paid leave in accordance with the conditions set under the mentioned provision of the Labor Law.

2. If an employee is summoned by any government authority of the police for any other reason or is detained and becomes absent as a result, he shall be granted leave with pay deductible from his accrued annual leave. If he does not have accrued vacation, he will be granted a maximum of seven (7) days compensatory time to work in lieu of the leave he used for the purpose. However, if the employee is detained as a result of the case he was suspected of or summoned for, the Undertaking shall wait for the return of the employee to his work up to 6 months.

3. Employees who attend education in accordance with educational assistance policy of the Undertaking shall be given paid leave for the exam time they take during working hours.

4.The employee who is given educational leave as per Artilce10.7.1.3 should present the necessary certificate.

10.7.2 Marriage Leave:

A. An employee who conducts his marriage will be granted four (4) consecutive days leave with pay for his marriage.

B. Any employee should notify his planned date of marriage to the Undertaking in advance and submit evidence to prove that he conducted the marriage within the leave days granted to him.

10.7.3 Leave for Union's Business

In addition to those leaves for Trade Union representatives recognized under the Labor Law, the following leaves shall be granted to Union leaders to execute the tasks of the Union:-

A. A leave of 4 hours shall be granted every year to all members of the Union to attend the annual meetings and/or elect union officers. The leave shall be given for the date on which agreement has been reached between the Undertaking and the Union.

B. Where the Union desires to hold extra-ordinary meetings, it may do so after the prior approval of the Undertaking.

C. A leave of 4 hours shall be granted per week to the members of the executive committee members of the Trade Union.

D.The executive committee members of the Union may hold extraordinary meetings after the prior approval of the Undertaking. However, such meetings shall not take place more than once per 3 months.

E.The Union may call a meeting of the Council of Union and shop stewards once every three months. The Undertaking shall grant a leave of 3 hours for such purpose.

F.A leave of half day shall be granted everyday to one executive committee member of the Union to carry out office duties of the Union.

10.8.

Leave of Absence without Pay 10.8.1General

A. An employee shall be entitled to leave without pay only after he has served six consecutive months in the Undertaking. If the service period is less than six months, it shall be treated in accordance with the Proclamation.

B. An employee shall not be granted leave without pay before utilizing his accrued annual leave.

10.8.2 Conditions for Granting the Leave

A .Leave without pay will be granted on exceptional and serious cases as determined by the Undertaking. However, such leave shall not be granted in excess of sixty (60) consecutive days in a given year. During any leave without pay, the employee's name shall continue to be carried on the payroll. The employee's seniority, pass privileges and other accrued service credits shall be retained.

B .An employee given up to four (4) days leave without pay may be allowed to compensate such leave within two months provided that there is overtime work in his section.

C. In all case where leave without pay is granted a letter shall be written to the employee settling forth the type Agreement.

11.3

C. If the employee is unable to return to work after the periods mentioned in paragraphs "A" and "B" above, or if in the meantime he is declared medically unfit for work, he shall be entitled to benefits in accordance with the insurance Scheme Appendix IV of this Agreement.

D. The above periodic payments may be terminated from an employee requested or who is actually receiving such payments on the following grounds:

1. If he refuses to report for treatment and examination or if he acts with negligence or if without any serious reason he tries to hinder the treatment;

2. If he behaves in such a way that he delays his recovery; or

3. If he infringed the directives issued by relevant officials concerning employees who sustained industrial injuries.

11.3.6 Disputes on disability percentage shall be settled in accordance with the decisions of the Medical Board concerned.

11.3.7 In case of disability or death the employee or his legal heirs, as the case may be, entitled to the benefit laid down under the Undertaking's Group Accident Insurance Scheme (GAS) policy.

1 1.3.8 An employee who suffered an industrial injury or a professional disease shall present a certificate approved the Undertaking's doctor testifying that he is fit to return to work.

11.3.9 An employee who is injured while on duty or sustains an occupational/ professional disease shall report such injury or disease within time limit mentioned in Article 10.4.2.

11.3.10 An employee who is unable to be working on his assigned job due to an industrial injury will be assigned on any job for which he is qualified. However, where such employee is assigned on a position which has a lower job grade/classification, Article 10.4.9 of this Agreement shall apply.

11.4

Non-Occupational Accident & Injury

11.4.1 The Undertaking shall pay full premium for benefits regarding non- occupational accidents or injuries arising off duty, handle the administrative works and give the employee's benefits as indicated in Appendix IV of this Agreement.

11.4.2 Conditions stipulated under Articles 11.3.7, 11.3.9 and 11.3.10 above shall also apply for non-occupational accidents and injuries arising off duty.

11.4.3 Group Accident Insurance Plan(GPA)

1.The Group Accident Insurance Plan (GPA) set forth in Appendix IV hereto and maintained by the Undertaking shall be considered as a plan covering employees benefits regarding non-occupational accidents or injuries arising off duty and/or industrial injury or occupational disease.

2.A. The Undertaking shall cover medical expenses related to the treatments and costs for complications of a female employee during her period of pregnancy up to her delivery. (but doesn't include the costs associated with the newly born baby).

B. i. Cost Sharing Scheme/Policy

The Undertaking and the out patient employees shall respectively cover 85% and 15% where an employee takes out patient medical service at Medical Services Unit for doctor's visit and laboratory fees.

ii. Eye glass frame cost & the Limit

a. The employee shall cover 10% of the cost of an eye glass frame that costs up to ETB 1,000. However, the employee shall fully bear the cost of an eye glass frame in excess of ETB 1,000.

b.The Undertaking shall fully cover cost of lens and other eye treatments.

iii. Dental Replacement and Treatment Costs

a. The Undertaking shall cover costs of dental treatment up to removal of a tooth. However, cost of dental replacement and related costs shall be covered 92% by the Undertaking and the remaining 8% by the employee.

b. The total cost of dental replacement of an employee shall not exceed ETB 10,000 per year.

Article 12 Salary, Salary Increment and Employee Incentives

12.1.

Definition

1.Subject to the definition given to it under the law, "salary" shall mean the regular payments that are effected to the employee for the work he undertakes as per his employment contract in monthly basis and it doesn't include other payments, additional payments and allowances and per diems that are specified by law.

2. The salary of a month shall be effected on the 16th day of the month for the work that performed up to the 15th day of the next month.

12.2.

Mode and Execution of Payment

1. Except for cabin crew and cock-pit crew, all employees shall be paid their salary on the last day of each month by directly depositing to the employees account or in check. The details shall be governed by the internal policy of the Undertaking.

2. If that day is a weekly rest day or a holiday, it will be paid on the last preceding working day. In the month of September, however, employees will be paid on the Eve of Meskel day.

3. The salary of cabin crew and cock-pit crew members shall be effected as per the relevant provisions of this Agreement.

4. Reimbursement of shortage in the pay of an employee shall be made within five

(5) working days from the date reimbursement is requested by the employee. However, the employee cannot claim any reimbursement after the lapse of six (6) months.

12.3.

Payroll Deductions

1. Salary of any employee shall not be deducted except as per the conditions and terms that are determined by the law, policy of the Undertaking and this Agreement and unless based up on the written request or agreement of the worker to that effect.

2. In case the employment contract of an employee is terminated before the debt that should be settled from the employee in relation to training or any other debt is collected, the Undertaking can deduct the commensurate debt amount from the salary of the employee or any other payment to be due to the employee or withhold or off set from such payments.

3. The Undertaking shall deduct the necessary amount from the salary of the employee and transfer same to the account of the Union if and only if the employee requests the Undertaking to deduct the Union contribution from his salary in written and signed request form. Up on the request of the Union or the employee concerned, the Undertaking shall stop deducting the amount of contribution from the monthly salary of the employee and start effecting the full salary to the employee.

12.4.

5. In consideration of the cost of living standard and based on the necessary study, the Undertaking may revise the amount of salary payment it pays to its employees.

6. Nothing in this Agreement shall be construed to prevent the Undertaking from establishing additional salary grades or from assigning a job at a higher or lower classification on the basis of the contents of the job or from opening or establishing new positions or from changing job titles, other than those which are currently in effect . However, the Undertaking shall not exercise this right with an intent to adversely affect the employee's present or future benefits and progress.

7. The salary increment mentioned under sub article 3 above will be applicable until the employee reaches the range maximum.

8. According to this agreement, an employee is entitled for annual salary increase provided that he/she serves the Company for 6 months within the budget year on a permanent basis and his name is active on payroll list or whose employment contract is not terminated for any ground on the effective date of the increment.

9. Without prejudice to sub-article (7) above, if an employee's current salary exceeds the range maximum of the salary scale set for the position he holds, he shall be paid his one month salary as a onetime bonus and shall not be entitled to annual increment.

10. Employees whose salary increment may exceed their current position range maximum due to annual increment to be made per this Agreement shall receive only the amount in excess of the range maximum multiplied by 12 months as a onetime payment.

12.5.

Productivity Bonus

1. The Undertaking, upon evaluating the productivity and performance ratings of the employee, shall pay an incentive of one to three months' salary of the employee as a bonus in order to motivate them for additional outcome and productivity based on the applicable policy.

2. With regards to the eligibility criteria for bonus and the conditions of payment, it shall be implemented as per the BSC/ ISC policy and procedure of the Undertaking. In particular, the number of unproductive times the employee spent during the appraisal period including the overall sick leave days and the number of other paid or unpaid leaves that are taken or unused under the Agreement during the year shall be considered and taken into consideration in determining the amount of bonus due to each employee.

12.6

Suggestion Award

When it is confirmed by the Undertaking that an employee has made extra ordinary effort to establish or create a system that enables to achieve best outcomes (such as to prevent theft, minimize waste and save cost and to enhance productivity, efficiency in work and performance, initiate innovative ideas and create new implementable working techniques and ideas), the Undertaking may provide the employee with special suggestion/ award as a token in recognition of his suggestion. The implementation details shall be as determined by the internal Policy and Procedures of the Undertaking.

Article 13 Acting Assignment

13.1

A. Normally, a Supervisor may select from among employees who hold positions immediately next or nearest to a higher position in the organizational structure of his Unit to be assigned to act on a higher position. An employee so selected has the obligation to serve in acting capacity.

B. Normally, acting assignment is fairly distributed amongst employees who are equally positioned, qualified and efficient to do the job.

C. No acting assignment shall be given for the same acted position.

13.2.

A. The job and pay classification of an employee assigned and serving in acting capacity on a higher position shall be the job and pay classification held before such assignment. However, the employee shall be paid an acting pay for the period he acted based the starting salary of the higher position or 12% of his own salary or whichever is higher provided he acted in the higher position in excess of fifteen (15) consecutive days. If an employee who discontinued after acting for fifteen (15) consecutive days again acted on the same position he shall be paid from the date of the second acting assignment.

B. An employee assigned to act shall not be entitled to the position allowance and other payments other than the payment due to the acted position as indicated above.

13.3.

A. In the absence of conditions indicated under Article 13.1 (a) above, if an employee is confirmed on a higher position he has been serving continuously in acting capacity, his job seniority shall be the first day of the month next to the month he was assigned to act on the job. However, he shall not be paid retroactively for the period he served in acting capacity.

B. A vacancy occupied on acting basis will remain open for a maximum of 90 days. Within this time, the Undertaking must assign employees fit for the position upon competition. However, the mere fact that an employee is assigned to act on a vacant position doesn't make him qualified to be assigned on the position permanently.

13.4.

Where an employee acting in a higher grade position is required to work overtime on his own regular job or in his acting capacity, he shall be paid overtime for the position he worked. However, overtime worked in an acting capacity shall be paid only for the time the employee is entitled to acting pay for the higher position in accordance with Article 13.2 (a) above.

13.5.

An employee assigned to act on a higher position shall simultaneously perform the functions of his own permanent position. However, where it is apparent that the two functions cannot be performed by one person alone, an acting person may be assigned for the employee's permanent position with the approval of the SVP or VP of the Division concerned or a person delegated by him.

13.6.

An employee serving in acting capacity shall not be assigned to act on another position. Where such situation occurs and it becomes necessary to designate an acting, a qualified employee may be selected from another department or division for the purpose.

13.7.

An employee who is given an acting assignment shall be advised in writing. If two employees have similar qualification and job grade in the same department or division, acting assignment shall be given on rotation basis the duration of which shall not exceed one month.

Article 14. Promotion and Transfer

1. "Job Promotion" shall mean the progression an employee can get as a result of being moved from one lower job grade/ position to a higher job grade/ position in the Undertaking's structure. An employee shall be considered to have been promoted to a higher position when he is transferred or placed from his current lower position to the next higher position as per the conditions specified in Articles

14.1 and 14.2 below.

2. Whenever there is a vacant position in the Undertaking, it shall be internally notified to all interested employees of the Undertaking who fulfill the necessary requirements for them to apply for promotion only for one time through a JOA notice before same is posted to external applicants. Such vacancy announcement should be posted in a place visible to all employees and interested applicants should file their letter of application within five (5) working days effective from the date of announcement.

3. Where it is found impossible to fill the vacant position with internal candidates as announced once, the Undertaking shall have the liberty to fill the vacant position through external vacancy announcement in which internal employees who can meet the requirements at the time of the new announcement may be allowed to participate with external applicants.

4. Wherever an employee is promoted, transferred or demoted from his position due to any reason, the employee shall be notified by in writing by informing him as to his new job position changes in his salary and benefits, the title of the new position along with the Job description of the new position. Such letter and notices shall serves as a modification of the existing contract of employment between the Undertaking and the employee concerned.

5. Where the employee refused to work at the new department or work station to which he was transferred or where the position assumed by the employee is cancelled/became redundant for a justifiable reason and where it is impossible to transfer him to another job assignments, the Undertaking can terminate the employment contract of the employee by giving notice due to him. In doing so, the Undertaking shall send to the Union a copy of the termination letter or give due notice to it.

6. The Promotion of an employee to a position higher in job classification shall be based on the acquisition of the necessary basic qualifications, work experience, ability and the performance result he demonstrated on the position he held previously.

7. Except as stipulated in this Collective Agreement, promotion shall be subject to sub-article 6 above and subject to the availability of a vacant position in the higher classification.

8. No employee shall be allowed to compete for an advertised position within his own department and which is lower in grade than the position he holds. However, the Undertaking will not prevent an employee desiring to change his profession from competing for such lower position without a good cause.

9. A promoted employee shall be granted a promotional increase of 12% of his current salary or the hiring rate of the new position or whichever is greater.

14.2.

Progression Scheme Exams

1. Any employee shall be eligible for progression exam only if he has accomplished the minimum service years required to progress next under the progression scheme of the position he currently assumed.

2. Any employee should also meet all the requirements set to be qualified to take the progression scheme exam.

3. An employee who meets those conditions specified in Article 14.2 (1) above and wants to take the progression exam should notify in writing to his immediate supervisor or higher supervisor of his intention to take progression exam ten (10) working day's before the first day of the applicable progression exam month. The supervisor who received the employee's request shall notify the employee in writing of the date, time and place of the exam within ten (10) working days of receiving the request.

4. Any written or practical progression exam shall be conducted as per the internal Policy and procedures of the Undertaking. However, the exam should consider the work experience of the employee while on the job and the trainings provided to him.

5. Should any employee be dissatisfied with the result or the process of any progression exam undertaken per the Scheme, he may file his grievance to the Union before the result is announced or within three (3) days of result announcement.

14.3.

Demotion

1. An employee may be demoted to a lower job grade position where a ground for his termination arises or owing to an agreement reached between the employee and the Undertaking or by a court's decision or at the discretion of the Undertaking or in case where this Agreement or the Proclamation enables the Undertaking to terminate him as part of a disciplinary measure and where the Undertaking mitigates the penalty and opts for the demotion in lieu of his termination.

2. An employee transferred to a lower grade position at his own request receives the basic salary of the said lower position plus the accumulated service increase he accrued over the years on his previous position. However, the employee shall be given the range maximum of the lower grade position where the total salary calculated exceeds the range maximum of the lower grade position.

3. Lateral transfer or transfer to a lower grade position shall be effective as of the date the employee actually assumes the position to do the job.

14.4.

Transfer or Relocation Allowance

1. Where an employee is transferred to a different location or station, the Undertaking shall bear all expenses for transportation of the employee, his spouse, dependent children and one domestic assistant to such location/station

2. An employee transferred from one location to another shall be entitled to a shipping/relocation allowance for him and his family's household goods and personal effects as follows:-

A. Positive Shipment: The employee and his spouse shall be entitled to Sixty (60) kilos by air each and forty (40) kilos by air for each child on positive basis.

B. Space Available Shipment: The employee and his spouse shall each be entitled to up to one hundred (100) kilos excess baggage allowance by air on a space available basis.

C. In addition, on space available basis, the Undertaking shall ship;

i. To the employee, up to 1,200 kilos by air freight or cover upto a maximum of ETB 500 for its ground transportation expense;

ii. To the spouse of the employee, up to 700 kilos by air freight; and

iii. To each child, up to 100 kilos by air freight. The Undertaking shall bear the premium for the insurance and will pay up to ETB 1000 for packing of the above listed household goods to be shipped.

3. All transfers of employees to outstations shall be governed by the internal policies and regulations of the Undertaking.

4. The above shall also apply to an employee whose contract of employment is terminated at a location other than the place of his hire.

5. The Undertaking shall bear the cost of transportation for a terminated employee to the location of his hire or to another location provided that the distance of such location does not exceed the distance to which he would have normally been transported to.

Article 15 Vacancies and Internal Promotions

A. As regards internal bidding/competition, an 'open position/ a 'job opening' shall mean a position advertised by the Undertaking for competition after opting for not to place an employee by promoting, laterally transferring or by demoting an employee to fill the open position.

B. For open positions as described in Article 19 above, it is only if the employee candidates fail to meet the requirements of the advertised position or fail to pass the examination or interview administered or where there is no qualified applicant internally, will the Undertaking consider external vacancy announcement to invite the application of external candidates.

C. A Job Opening Announcement (JOA) shall be posted in a visible notice on all bulletin boards of the Undertaking and five (5) working days shall be given to interested employees to submit their application from the date of the notice. .

An employee may be allowed to compete for an open position only if he fulfills the following conditions:

a. He must possess the required educational qualification requirements and relevant work experience. (The Undertaking may revise/change these requirements when announcing the Job opening for the second time due to the absence of a qualified employee in the first announcement. It will notify the Union with a copy of the changes).

b. He must have served on the position he holds at least for one year.

c. Subject to Article 14.1.8, the job grade of the position he holds must be equal to or lower than the position opened for competition.

15.3.

If an employee wants to apply for any vacant position that is announced while he is on leave, he can apply by presenting/sending his duly signed application to that effect either through facsimile or an e- mail message and attachment in a manner that leaves no doubt as to his intention.

15.4.

An employee who has failed to pass the written exam or interview shall not be deemed to have won the bid for the open position merely because he stood first or because he was just the best from the other candidates given the requirements.

15.5.

An employee who is transferred to higher, lower or similar position can't oppose his promotion/ transfer/demotion from the date he is notified in writing that he passed the exam administered for it or the promotion/transfer notice is declared or from the date he is aware of such notices or results. Such an employee can only be placed or re-assigned back to his former position permanently through bidding on another JOA as applicable to his previous position.

15.6.

The promotion date (the position seniority) of any promoted employee shall be calculated from the date the promotion letter that declares the employee has won the competition is issued to him or the date he knew of the transfer, but salary shall be calculated from the actual date on which he started the new job. The previous department of the employee may not retain him or delay the employee from reporting to the new department for a period more than 1 month from the date the employee is notified to have qualified for the promotional transfer. However, if the employee is laterally transferred to similar position or to a lower grade position, the former department may not retain him for more than two (2) consecutive months.

15.7.

A. The Union shall be made to participate in the Internal Promotion Committee to be established on ad-hoc basis to undertake internal promotions and transfers. The composition of the Committee shall be three (3) representatives from the Undertaking and two(2) from the Union or two(2) from the Undertaking and one(1) from the Union. If the number of members should increase, this shall be one (1) from the Undertaking and one (1) from the Union on (1:1) basis. In addition, all matters concerning promotion and transfer of employees shall be determined in accordance with the internal rules and Policy of the Undertaking governing such matters. The Undertaking shall issue a standard working procedures (SOP) of the Committee in consultation with the Union. The Committee shall be dissolved upon discharging its duties under such working procedures.

B. For Open positions stated in Article 14 above, the Undertaking shall cause an external job opening announcement for external candidates only when the internal candidates fail to meet the requirements set for the advertised position or fail to pass the Examination or interview administered following the first JOA announcement made internally.

C. The Undertaking shall determine the exam date, time and place upon finalizing registration of eligible applicants for open positions.

Article 16 Job Performance Review and Ratings

16.1.

Objective

A. To enhance the ethical behaviors, strengthen good sides, correct weak sides and enhance the productivity of employees and their contribution to the Undertaking;

B. To enable employees to make their own skill evaluation;

C. To identify highly skilled employees, to encourage them, to give them appropriate training and to prepare them to higher responsibility; and

D. To provide with professional and performance improvement program to employees who exhibited lower performance score and to take the appropriate measures if there is no any improvement.

16.2.

The Undertaking shall notify the initiatives and results expected from the employee and the decision or measures it will take as to the nature of the work of the employee in its BSC/ISC policy and internal rules. The employee shall then be expected to achieve those targets and results as per such requirements. The Union shall make a follow-up to ensure its implementation as per the policy.

16.3.

If the employee is dissatisfied with the decision on his performance review or the measures, the procedure to file his grievances shall be as it is shown in the BSC/ISC policy and internal rules of the Undertaking.

16.4.

The performance evaluation of elected Union leaders shall be filled only according to their terms of employment and based on their performance during the time they spent while on their regular duties.

Artide 17 Grievance Procedure

17.1

General

1.Any complaint regarding the interpretation or application of the Undertaking's policies, rules and regulations, procedures, this Agreement, or the law shall be considered as 'grievance'.

2. The Undertaking, the Union and each employee concerned shall cooperate in good faith in an effort to adjust all grievances as promptly as possible and in the best interest of the parties.

3. A member of the council or shop steward of the Union whose name has been submitted to the Undertaking through the Union, shall attempt to settle any grievance with concerned Supervisor. If a settlement could not be reached, the matter would be processed through the Grievance submission Procedure set under this Agreement.

4. If the Supervisor does not render a decision on a grievance within the time frame specified herein, the employee has the right to refer the grievance to the next higher level. This provision applies to all steps of grievance submissions under the grievance procedure.

5. An employee having a grievance shall present his 1st level grievance to the concerned supervisor within ten (10) working days from when it arises and is known to him unless he is absent or prevented by illness or other reasons beyond his control.

6. If an employee or the Union acting on behalf of the employee fails to submit a grievance in the manner and within the period specified herein, the employee or the Union shall be deemed to have waived the right to do so and the case will not be reviewed thereafter.

7. When handling a given grievance, both the grieving employee and the concerned Supervisor shall use the Grievance Submission Forms provided in Appendix V of this Agreement. The Undertaking shall have no duty to entertain grievances presented in any other form.

8. The Union will be provided with a copy of the grievance and the decision rendered at each level.

9. Any point of grievance that is not raised in the first step can't be raised in the second and third steps the grievance during the process.

17.2.

Grievance Submission Procedures

A. An employee having a grievance, not relating to the department In which he works, shall submit same to the concerned department.

B. Except those grievances mentioned under paragraph A' above, all grievances shall be administered under the following procedures.

17.2.1. First Step Grievance

A. An employee who has a grievance shall present his 1st step grievance to his immediate Supervisor within the time frame specified in Article17.1.5 above by using the relevant grievance submission form set for the under Appendix V.

B. The Supervisor shall render his decision within five (5) working days.

C. If the grievance concerns disciplinary action imposed on the employee in writing, the employee may present his grievance to the next higher level of authority.

17.2.2. Second Step Grievance

A. If an employee is not satisfied with the decision given under the 1st step, he may appeal to the next higher level of supervision in writing within five (5) working days from receipt of the decision under step one unless prevented by reasons beyond his control.

B. Unless it is beyond his control, the concerned Supervisor shall review the case and render his decision in writing within five (5) working days of receipt of the appeal. He may call both the employee concerned and his immediate supervisor to discuss the points of grievance with them. Where possible, the Supervisor shall exert all efforts to settle the grievance amicably.

17.2.3 Third Step Grievance

A. If no amicable settlement is reached at the 2nd step, the Union or the employee, unless prevented by a reason beyond its control, shall submit the grievance to the Labor Relations department within five (5) working days by filling in the form. The Labor Relations Department shall submit the grievance within 10 (ten) working days to the concerned Executive Officer/Vice President of the Division.

B. The highest supervisor, after having discussion with the employee or representative of the union and doing everything necessary, shall give a decision he considers fit both for the Undertaking and the concerned employee within twenty (20) working days of receipt of the grievance. This decision shall be final and binding within the Undertaking.

Article 18 Per Diem

18.1.

Per Diem shall be paid to employees to cover meal, lodging, transport, embarkation fee and other similar necessary expenses when he is sent outside his domicile for the business of the Undertaking.

18.2.

He shall take per diem in advance. Arrangements for advance payment or authority for payment at the site shall be made whenever his days of duty is extended.

18.3.Other per diem and allowances shall be applicable to the eligible employees as per the policy of the Undertaking.

19.2.

The Undertaking shall arrange transport service to and from place of work to employees assigned on night shifts to the extent that their residence is convenient for Company vehicles.

Article 20 Free or Reduced Air Transportation

20.1.

Subject to contrary agreement by the Undertaking and the Union, the Undertaking shall grant free and/ or reduced rate air transportation on space available (SA) or positive basis, as the case may be, for employees with more than one (1) year of service and their eligible family members over the routes of Ethiopian and other carriers with which Ethiopian has agreement based on its internal policy and regulations. The annual ticket allotment of each employee shall be determined per the MP & PM of the Undertaking. However, changes on the number of ticket allotments and its usage by the employees may be made upon consultation with the Union as and when the Undertaking intends to introduce changes on same since it undergoing fast growth and as the number of Employees is increasing and the competition is getting tougher calling for such changes from time to time.

20.2.

Employees and their immediate family members who request to have positive reduced rate air transportation for the sector (s) concerned on Ethiopian routes shall pay 40% of the applicable fare. This shall be applicable only in the absence of revenue passenger.

20.3.

An employee with less than twelve (12) months of service will not be granted free or reduced rate air ticket ticker except in case of accident or emergency which the Undertaking appreciates.

Article 21 Productivity

21.1.

The Undertaking shall train its employees and endeavour to provide all that is required to increase their productivity. It shall also take all necessary measures for the protection of the health, safety and dignity of the employees.

21.2.

The Undertaking shall determine the standard of quality and the speed required to perform assignments. Such speed and quality, however, shall be recorded in advance.

21.3.

An employee shall perform his assignment in accordance with the standard of quality and speed required. Where standard of quality or speed is not established or where it is not possible to establish such standard, the employee shall perform his assignment diligently and carefully with satisfactory standard of quality and speed.

21.4.

The Undertaking and the Union shall jointly give the necessary assistance to promote the physical well-being and sporting culture and thereby productivity of employees.

22.3.

Progression Schemes

The Undertaking shall prepare a progression scheme of every position and shall notify the Union in case of any change in the progression schemes by sending an approved copy of same.

Article 23 Termination of Employment Contract

23.1.

Grounds for Termination

An employment contract shall be terminated either by the initiation of the Undertaking or of the employee or as a result of the conditions stipulated under the provisions of the Proclamation or this Agreement or by a specific agreement made between the Undertaking and the employee concerned.

23.2.

Termination of Employment Contract by the Undertaking

1. The Undertaking can terminate the employment contract in accordance with the grounds that are deemed sufficient grounds for termination under the relevant laws and upon giving the necessary notice to the employee.

2. Subject to the conditions set forth under the Proclamation and other relevant labor laws, the Undertaking can terminate the employment contract of any employee without giving notice due to any the occurrence of any one of the grave offences warranting termination as enumerated in the Appendices of this Agreement.

3. Upon terminating the employment contract of any employee as a result of a fault of the latter, the Undertaking shall issue a letter of termination to the employee stating the effective date and reasons for his termination within 30 working days of the decision to that effect after the end of investigation, if any.

4. The notice of termination shall to be served to the employee in person. However, if it is not possible to find the employee or the employee refuses to accept the notice, the notice shall be posted on the bulletin board of the place where the employee works for 10 calendar days; and if he fails to appear in person and collect the notice within such period of time, it shall be considered as it has been served to him and same shall be attached to the employee's file.

23.3

Termination of Employment Contract by Operation of Law or by Agreement

1. The employment contract of any employee shall be immediately terminated upon

the death of the employee or where he retires as per the relevant law or if the Undertaking is closed permanently due to bankruptcy or any other reason or confirming that the employee can't perform his work due to partial or full disability.

2. Any employee and the Undertaking may terminate the employment contract by a specific written agreement made between them or in accordance with the conditions provided under this Agreement.

1. Where an employee attains the age of official retirement as specified by the relevant law, his employment contract shall terminated automatically by operation of the law.

2. As it is shown in above paragraph, the Undertaking shall serve a written notice to retiring employees to be separated on ground of retirement 12 months' before their official separation date. The employee should also required to fulfill the necessary formalities at the time he left with six months' period for retirement.

3. Notwithstanding to sub article 1 of this provision, where the employee requests to be separated from the Undertaking on ground of early retirement based on his own will in accordance with the Public Servants' Law before his age is reached to official retirement age, he shall notify the Undertaking by giving a 30 calendar days advance notice advising his desire to be retired. Upon reviewing the request of the employee in line with the conditions required under the relevant law and where the Undertaking accepted the request, it shall notify the concerned government authority for his due entitlements and certifies the employee for retirement benefits in the Undertaking.

23.4

Termination of Employment Contract by the Employee

1. Where an employee who completed his probation period wants to resign his work by his own initiation for whatever reason, he shall have the duty to give an advance notice of at least 30 calendar days to the Undertaking stating his intention to resign. However, the Undertaking may shorten the notice period by declaring in writing that it has accepted the employee's resignation with a specified effective date.

2. Any employee who resigns from work by his initiation without giving the minimum 30 days' advance notice required under sub article (1) above shall be liable to pay his 30 days wage to the Undertaking in lieu of the notice as a compensation. The Undertaking may withhold or deduct from final payments due to the employee in order to set off the 30 days notice expected of the employee.

3. Any notice to be served by the employee should be submitted the employee to immediate supervisor or head office of the undertaking (Human Resources Division) by letter or registered mail.

23.5

Chapter Three: Special Provisions Relating to the Working Conditions of Specific Group of Employees

Article 24 Ticket Agents, Cashiers and Accountants

24.1.

The Undertaking shall provide the necessary calculating machines and manuals to enhance the performance of agents, cashiers and accountants.

24.2.

Where it is not possible to collect the outstanding amount specified in the Agent Advice Note (AAN) within a period of four (4) months and fifteen (15) days as of the AAN is raised against the employee from the concerned Accounting Department, the Undertaking will deduct fifteen percent (15%) of the employee's monthly salary in settlement of the amount at the end of such period.

24.3.

A. Cashiers who lose money by error shall not be obliged to pay more than fifteen percent (15%) of their monthly salary in settlement of such debt.

B. Each Cashier or a Ticket Agent working as cashier who handles an average of ETB 10,000.00 (Ten Thousands Birr) or more per day in cash shall be credited for ETB 350 (Three Hundred Fifty) net of tax per month as indemnity for loss of money through error. At the end of the year, the balance or the full amount, as the case may be, of the total credited amount shall be paid to the Cashier or concerned Agent.

C. However, if the cashier or the Ticket Agent working as cashier leaves the position or another cashier or agent is made acting on or before the end of the year, he shall be paid the balance or the total credited basis for the period he has served on the position based on the indemnity of ETB 350.00 (Three Hundred Fifty birr) net of tax per month or shall be paid the acting payment where there is no loss of money during the period.

24.4.

Where within four(4) months and fifteen(15) days from the time an error of over payment or over refund is realized and the employee cannot pay back the under collection, the Undertaking shall deduct fifteen percent (15%) of the employee's salary each month in settlement of the amount involved.

24.5.

The immediate supervisor of the concerned employee may use the good offices of the Undertaking in the collection effort of any amount over paid, over refunded and / or under collected.

Article 25 Cabin Crew Members

General

Subject to the rights and duties as well as benefits of all employees of the Undertaking provided under the general provisions of this Collective Agreement, the following additional rights, benefits and duties shall be valid and applicable to all cabin crew members.

25.1.

Definition

1. "Cabin Crew Member" shall mean a professional employee of the Undertaking who provides care, service and assistance to passengers on board for their comfort and safety in accordance with the job assignments, directives and safety policy and rules issued by the Undertaking.

2. "One set of Cabin Crew" shall mean a team composed of totally or partially from the lead hostesses/ pursers, Senior Hostesses/ Senior Pursers hostess/ purser and junior cabin crew members.

3. "Double Crew" shall mean a team of cabin crew members composed of two employees from each cabin positions.

4. "Duty Time” shall mean the period of time running from reporting time ( one hour and 30 minutes before departure) or the time the cabin crew appears for duty or deadheading or standby assignment, whichever is late, up to destination or release from such duties or deadheading or standby assignment for flight terminating at all stations, or after lapse of 30 minutes from end of the flight for flights returning home.

5. "Calendar Day” shall mean consecutive 24 hours starting from the reporting time based on the local time.

6. "Flight Duty” shall mean an in-flight service performed in flights such as scheduled flight, extra section, a non scheduled flight such as publicity flight, charter, re-scheduled flight, ferry flight and so on.

7. "Flight / Scheduled Flight” shall mean a segment or serious of segments of flights bearing a flight number designated by the Undertaking.

8. "Delayed Flight” shall mean a flight, which cannot depart on the scheduled or quoted departure time.

9. "Cancelled Flight” shall mean a flight that is cancelled or interrupted.

10. "Extra Section” shall mean additional flight arranged to carry passengers unable to a travel with the schedule flight due to lack of spaces or change of flight direction.

11. "Charter Flight” and/or "VIP Flight” shall mean a non-scheduled flight arranged for private, groups, high government officials or organizations on charter basis.

12. "Ferry Flight” .shall mean a flight for positioning an aircraft to other location and which doesn't carry revenue passengers or cargo.

13. "Assignment or Rotation” shall mean a program designed for flight crew members containing patterns that consist of programs for operating duty, deadheading, standby duty, reserve duty, trainings offered by the Undertaking, travel document renewals, medical check ups and guaranteed days off.

14. "Departure” and "Destination” shall mean a station where a cabin crew member begins and accomplishers his/her pattern and trip hours period.

15. "Flight Time" shall mean the total time from the moment an aircraft moves under its own power for the purpose of taking off until the moment it comes to rest at the end of the flight or engine shut off (block-to-block).

16. "Deadheading" shall mean travelling in uniform as passenger from one station to another to perform or after accomplishment of an assignment.

17. "Home base" shall mean Addis Ababa where the Headquarters of Ethiopian Airlines is located.

18. "Augmented Crew Operation" shall mean the operation to be carried out by double or multiple crew that requires longer flight time and duty than the flight time and duty time than that can be carried out by one set of cabin crew. This shall be applicable in long-haul flights which are basically related to across continent flights. However, in case of exceptional and unique operational requirements, the Undertaking shall deploy double or multiple set of crew.

19. "Monthly Schedule" shall mean, for the purpose of crew deployment, being the weekly, monthly or quarterly program of cabin crew members based on their roster. It is the schedule that the Undertaking notifies cabin crew members every Fridays or 5 days before the next month starts for the monthly schedule.

25.2.

Monthly Flight Time

25.2.1. The regular monthly duty hours required of a cabin crew member shall be eighty (80) flight hours in one calendar month.

25.2.2. The total monthly flight time provided under sub-article 1. above shall include all the flight block hours during the month, the three hours per day a cabin crew member is credited to take her physical check- ups, or recurrent trainings and document renewal upon being grounded for such purposes in addition to the block hours. It shall also include all deadheading assignments in full and the standby duty hours credited in accordance with Article 25.8 and 25.9 herein under.

25.3.

Duty Time Limitations

A. 14 hours for day flights and 13 hours for night flights shall constitute the maximum duty time within 24 consecutive hours. This shall include the flight time counted from the scheduled reporting time or actual reporting time up to the release time after the aircraft's landing. For a single set of cabin crew, the duty time of 14 hours may not exceed a flight time of 10 hours when the flight consists more than one landing.

B. The Undertaking may issue internal procedure to give a controlled rest to Cabin Crews operating in long haul flights with single crew duty time.

25.4.

Delay at Home

Cabin crew members who are informed of delay shall be credited 1:4 for delays at home.

25.5.

Required Reporting Time

25.5.1. Reporting Time at Home Base

A. For international flights, reporting at home base shall be one hour and 30 minutes before scheduled departure time. This shall also apply for American flights.

B. For domestic flights, the reporting time shall be one hour (1:00) before the scheduled departure time.

C. For non-scheduled VIP flights, the reporting time shall be three hours (3:00) before the planned departure time.

D. For deadheading to/ from, the reporting time shall be as indicated under Art. 25.5.1 (a) and 25.5.2 of this Agreement.

E. The provision of this Article on reporting shall not be considered into the minimum monthly required flight time of 80 hours, but shall be used for monitoring the observance of the duty time limitations that should be calculated under Article 25.3 of this Agreement.

A) For any flight, the reporting time shall be counted from the actual reporting time or 1 hour before the planned departure time.

B) However, the reporting time for America, Tel Aviv and London flights shall be counted from the actual reporting time or 2 hours before the scheduled time of departure.

25.6.

Release Time

1. A cabin crew member shall be released from any flight operation 30 minutes after landing (completion of the flight).

2. However, the release time of any cabin crew member from Boeing 777/B-777/ fleet type shall be 45 minutes after landing.

25.7. Grounds for Extension of Duty Time Limitations 25.7.1 Extension of Duty Time at the Discretion of the Pilot-in-Command (PIC)

1. The pilot-in-command, whenever he deems the flight can be properly operated, shall have the discretion to extend the duty time limitations provided under in Article 25.3 and 251.2.2 considering the condition of other crew members.

2. The pilot-in-command may not extend the duty time limitations in accordance with sub-article (1) of this Article by more than 3 hours save for emergency cases.

3. The number of extended hours shall be counted by taking, not the intended time of extension, but based on the actual situation that the pilot-in-command encountered with.

25.7.2. Augmented Crew Operation /Double & Multiple Crew/

25.7.2.1. General Provisions

1. The Undertaking may operate by deploying double set or multiple set of cabin crew for operations which require beyond the duty time limit specified in Article 25.3 above and within the duty time limit specified in Article 25.7.2.2 below.

2. The Undertaking shall operate in accordance with sub-article 1 herein above for long haul flights and in case of exceptional and unique operational requirements.

3. Long haul flights refer to inter-continental flights crossing continents.

4. Where the Undertaking operates long-haul flights with double or

Multiple crew operation, it shall ensure that the number of Cabin Crew members to be assigned for service onboard the flight is more than the number of Crew members necessary for safety minimum.

5. Each cabin crew member shall be provided with 3 hours uninterrupted in-flight relief during double or multiple crew operations.

25.7.2.2 Duty Time of Augmented Crew Operations

In any 24 hours period, the duty time of double cabin crew operation shall be nineteen (19) hours while that of multiple cabin crew operation shall be eighteen (18) hours respectively.

25.7.2.3 Frequency of Augmented Crew Operation

1. In the regular monthly roster, the number of frequency that a Cabin Crew is required to operate across Atlantic long haul flights with double or multiple crew operation shall be only for two times.

2. Notwithstanding to sub article 1 of this provision, the Undertaking may increase the frequency of assignment on North American flights of a cabin crew member to three (3) times per month owing to the occurrence of operational problems to the Undertaking.

3. The Undertaking shall fulfill the position and composition of cabin crew members for across Atlantic long haul flight operations.

25.8.

25.10.

Deadheading

1. Deadheading shall be credited for 100% for the total trip time.

2. Duty time for deadheading shall include the required reporting time and shall end at 30 minutes after landing at the release time.

3. The duty time of deadheading cabin crew shall not exceed the duty time mentioned under Articles 25.3 and 25.7.2.2. of this Agreement.

4. The Undertaking may, when encountered with unique situations beyond its control, assign a deadheading crew to work as long as his duty time is not exceeded.

25.11.

Meeting and Training

1. The Undertaking shall grant leave for 2 representatives of the crew association to attend a meeting of International Cabin Crew Association every year for days required for the meeting and travel time. The list of such representatives shall be prepared in such a way that the Undertaking's operation shall not be affected.

2. A Cabin Crew member attending a training arranged by the Undertaking shall earn 3 hours pay for each day during which he/ she was on training.

25.12.

Promotional /Publicity Assignment

In principle, a Cabin Crew member cannot be assigned beyond her/his regular assignment. However, Cabin Crew members may be assigned on promotional/ publicity assignments based on consent and when necessary. A Cabin Crew so assigned shall be credited for 100% for the time spent on such assignment.

25.13.

Crew Rest Period

25.13.1. Crew Rest at Home Base

A. Cabin Crew member shall be entitled to 20 consecutive hours of crew rest at home base after both international and domestic flights that take more than 4 hours. However, for flights taking less than 4 block hours, a crew rest of 12 hours shall be granted after each flight. This shall apply for flights to/from home base (Round trip flights) while crew rest after flights which return from layovers shall be 20 hours.

B. The crew rest at home base upon returning from any augmented flight shall be 48 hours.

25.13.2. Rest period at outstations

The rest period at outstations shall mean uninterrupted period granted to cabin crew members at their hotel after destination. Such rest period shall be 9:30 consecutive hours or double the flight time, whichever is higher.

25.14.

Hotel Accommodation

Unless prevented by reasons beyond its control, the Undertaking shall arrange a room for each crew member on regular scheduled flights at reasonably secured hotel.

25.15.Days Off in a Month

25.15.1. Guaranteed Days Off in a Month and Granting Procedure

1. '' Guaranteed Day Off" shall mean the seven (7) guaranteed days off given to Cabin Crew Members in a month at Addis Ababa. Except for exceptional grounds, the Undertaking shall not assign a Cabin Crew member who is on his guaranteed days off at any flight.

2. Cabin crew members shall be granted three (3) consecutive guaranteed days off and a further two (2) consecutive guaranteed days off and two (2) guaranteed days off per month which is in 3:2:2 basis.

3. Without prejudice sub-article 1 of this provision , the Undertaking may , as alternative, grant three (3) consecutive days off, 2 (two) consecutive guaranteed days off 1 (One) guaranteed day off and another 1 (One) guaranteed day off which means in 3:2:1: 1 basis per month. However, where the cabin crew member requests to take the monthly 7 (Seven) GDO at a time, the Undertaking shall facilitate conditions as much as possible.

4. The Undertaking may not issue the name of cabin crew members under guaranteed days off in its weekly published schedule.

5. During guaranteed days off, the Undertaking shall not oblige the cabin crew members to call to the flight control department. Guaranteed days off shall be counted after utilization of the rest period indicated under Art. 25.13 of this Agreement.

6. The monthly days off schedule will be issued at the beginning of each month.

1. Where the Undertaking is forced to affect the GDO of a cabin crew due to operational requirements, the start of the GDO shall be extended by the equivalent number of affected days off (ADO) provided that it does not affect the next schedule.

2. However, if the extension of the GDO affects the next schedule, the Undertaking shall pay overtime in the following manner:-

A. If it is only one of the consecutive GDOs that is affected, 4 hours or the block hour that the cabin crew member flown, whichever is greater, shall be considered.

B. If one of the consecutive GDOs being affected resulted in affecting the other GDOs, 4 hours per day shall be considered for each ADO.

25.16.

Sales on Board

A. In case of loss/shortcoming in sales transactions by any cabin crew member who handles more than three different foreign currencies, the cabin crew will not be made to pay for the loss/shortage up to USD 10 for the sales transacted up to USD 300 provided the loss encountered by the crew has not occurred repetitively. However, where the loss/shortage occurred involves a significant amount, it shall be inspected by his immediate supervisor.

B. Cabin crew members shall be liable for loss of the Company's property acquired in whatever way and which is under his/her custody.

C. The Undertaking shall avail a forged note- sorting and credit card validator machines on every flight. Cabin crew members will not be liable for shortage or invalid credit card or a forged note should this happen as a result of absence of these machines. In the absence of a Dollar checker, the Cabin Crew will not be obliged to sell whenever he receives a USD 100 note. However, a Cabin Crew who transacts with a 100 USD note, being aware of the non-availability of credit card validator for checking, shall be liable to pay the amount of the note found to be forged.

D. For flights returning/coming to Addis Ababa, the Undertaking shall collect duty free commercial items within 30 minutes after landing on the plane. However, if the delivery is not carried out on the plane, the cabin crew member should report to the In-flight Service/IOCC Departments.

E. In case of loss/shortage, the cabin crew member shall pay at the prevailing current exchange rate. However, the cabin crew member shall not be responsible if:

i. The trolley seal that contains the commercial goods is broken; or

ii. The money pouch is found broken or lost, and

iii. The commercial good is damaged as a result of the technical failure of the airplane.

25.17.

Sickness out of Domicile

1. If a Cabin Crew falls ill away from his domicile, he will not be made to fly back to Addis Ababa if the doctor treating him certifies that the employee's health will deteriorate as a result of flying.

2. The medical cost incurred by a Cabin Crew member due to illness while he was on duty shall be covered as per the medical insurance policy of the Undertaking.

25.18.

Meals on Board

1. Cabin Crew members who fly on duty shall be provided with the standard C-9 meal that goes in line with the flight time.

2.The Undertaking will arrange meals for cabin Crew who could not eat their meals on board international and domestic flights if the need is determined by the Capitan-in- command.

25.19.

Flight Trading

1. Single Trades

A. Flight trading by Cabin Crew members shall be allowed provided they hold the same positions and provided further that such trading does not affect the flights of the Undertaking and crew duty hours as to entail overtime pay.

B. The Cabin Crew members who trade their flights shall do so by notifying their agreement to trade their flight to the head of crew scheduling unit five (5) hours before the flight time during office hours.

2. Monthly Trades

Cabin Crew members may, by requesting Manager or Supervisor Cabin Crew Administration, trade their monthly schedule until the last day of each month before 17:00 hour. Where such last day is a weekend or holiday, the request shall be submitted on the day proceeding the last day.

25.20.

Schedule Advice Time

Should the Undertaking needs to make a change of flight schedule, it shall advise the Cabin Crew member concerned before eight (8) hours.

25.21.

In-flight Regulations

The Undertaking shall issue the policy and procedure that serves for Cabin Crew members and distributes to each Cabin Crew member.

25.22.

Payday and Salary

A.In addition to the provisions of stipulated in Article 12 of this Agreement, the following shall be applicable to Cabin Crew members.

B. Cabin Crew members shall be paid on the 12th day of each month. If such day falls on a Saturday, Sunday or public holiday, it shall be effected on the preceding work day.

C. In addition to the basic salary, each cabin crew member shall be entitled to earn overtime pay for each flight hour he was assigned to work beyond the required 80 (eighty) flight hours per month.

D. The overtime rate per hour shall be 1.25 times the basic hourly rate of the crew member.

25.23.

Baggage Allowance

The crew member shall be entitled to one baggage checked -in and one follow me to carry with them.

25.24.

Loss of Baggage

A.In the event that the baggage of a cabin crew member on flight duty is misplaced

he/she shall be paid as follows to enable him/her buy required clothing for immediate use;

i. If the trip lasts up to 3 days - USD 100.00

ii. If the trip lasts over 3 days - USD 140.00

B. If the baggage is totally lost, the Undertaking shall pay as per the IATA regulations.

25.25.

Holidays

1. Cabin Crew members shall be entitled to celebrate the holidays listed in this collective agreement. However, if conditions of work necessitate Cabin Crew members may be assigned on holidays.

2. A crew member so assigned shall be paid overtime in accordance with the Proclamation.

25.26.

Maternity Leave

1. A Cabin Crew member on maternity leave shall not be obliged to take her accumulated annual leave. The maternity leave shall be given in accordance with the Ethiopian labor Proclamation in force.

2. Upon utilizing all her maternity leave and depending on the work, a cabin crew member who was on maternity leave may be granted an additional leave without pay up to three (3) months where she so requests depending on the need of the operation. Within this time, the Cabin Crew member is bound to be ready to work.

25.27.

Emergency Leave

If the Undertaking confirms that the cabin crew members faces emergency problem, it shall provide her with emergency leave that she needs to settle the emergency. The emergency leave shall not include the GDO in the roster of the Cabin Crew member and holidays.

Article 26 Aviation Technicians

General

In addition to the applicability of the general provisions concerning all employees, the following special provisions shall in particular be applicable to Aviation Technicians.

Definition

1. "Aviation Technician" shall mean any professional person trained in aircraft maintenance, repair and overhaul in a legally accredited aviation academy and licensed body for aircraft maintenance, repair and overhaul by the Ethiopian Civil Aviation Authority (ECAA) or other competent similar regulatory and employed by the Undertaking.

2. "Flight Technician" shall mean an aviation technician of the Undertaking who has taken the relevant system course and acquired a special license or is type rated to the aircraft model of which he took a system course on.

26.1.

Employees who are assigned for some emergency and urgent works at outstations shall be entitled to earn overtime payment for the work they carried out beyond their normal duty time as determined under the policy of the Undertaking.

26.2.

Flight Technicians

26.2.1. Period of Assignment

The duration of assignment of a Flight Technician who commended to operate international flights shall be as determined by the Undertaking.

26.2.2. Annual Leave Utilization

A Technician assigned on flight under the aforementioned Article 26.2.1 shall utilize his annual leave before starting the assignment or may take his leave at the end of the assignment as conditions of the Undertaking's operation dictate.

26.2.3. Training

A Flight Technician assigned on flight for the first time shall be given necessary trainings in accordance with the Undertaking's internal Technical Policy.

26.2.4. Next Flight Assignment Schedule

A.The next flight program of a Technician who has completed his flight period as indicated under Article 26.2.1 and returned to his regular assignment shall be on a consecutive basis and based on his performance while on flight. That is, the employee's performance evaluation shall be done by considering his performance both on his flight assignment and his normal duty by taking both in terms of percentage proportionately.

B.Weekly flight schedule shall be done and issued to Flight Technicians before two days. However, change can be made at any time to such schedule. The notification of the flight schedule to the employee shall be executed as it is clearly indicated in the internal policy of the Undertaking.

26.2.5. Reporting Time

The reporting time for Flight Technicians shall be 1 hour and 30 minutes before departure at home base (Addis Ababa) and 2 hours at Outstations.

26.2.6. Transportation and Per diem

Transportation, hotel accommodation and per-diem for flight technicians shall be as indicated under Article 25.

26.2.7. Duty Assignment of Flight Technician

Routes for which Flight Technicians are assigned shall be allocated equally as much as possible to Flight Technicians of the same grade, license and rating.

26.2.8. Aircraft Seat

One passenger seat shall be allocated to a Flight Technician who travels on duty. However, where the flight is not full (open), he will be upgraded to Business Class in accordance with the policy of the Undertaking. The meal to be loaded for flight Technicians will follow the class of their seat.

26.2.9. Tool Box

The Undertaking shall avail transport for the toolbox of a Flight Technician to and from an aircraft.

26.2.10. Weekly Rest Period

Flight Technicians shall have two consecutive days of rest per week. Where, however, conditions of work dictate otherwise, the rest days will be given on staggered/intermittent basis.

26.2.11. Post Flight Rest

A flight Technician who returns to home base upon completion of his flight assignment shall be given a minimum of 10 hours rest before he takes the next flight.

26.2.12 Duty Time Limitation

The working hours of Flight Technicians shall be 8 hours per day starting from reporting time. For hours worked in excess of the 8 hours, the Technician shall be entitled to overtime pay.

26.2.13. Meeting

The Undertaking shall grant the required number of leave days for two representatives of the Technicians Association to enable them attend the annual international meeting of Technician Associations for the days the conference takes and the round trip travel. The election process of the representatives of the Technicians Association who attend the meeting/conference shall be conducted in the way it doesn't affect the Undertaking's operation.

26.2.14. Miscellaneous Provisions :

The following articles that are applicable to cabin crew member shall also be applicable to flight technicians: Article 25.1.6, 25.1.14, 25.1.15, 25.17, 25.26.

Chapter Four Types and Mode of taking Disciplinary Measures & General Provisions

Article 28 Disciplinary Offences and Measures

28.1.

Definition

"Disciplinary Measure" means a corrective action/measure that the Undertaking takes as per this Agreement against any employee for violating this Agreement or failing to properly observe the work rules and regulations that are issued by the Undertaking or violating the rules that the Undertaking and the Union put in place up on mutual agreement.

28.2.

The Purpose and Procedure of Taking Disciplinary Measure.

A. Both parties have agreed on the importance of discipline for the required industrial peace, productivity of the Undertaking, safety of the employee as well as for best customer service. The Union and the Undertaking have agreed to exert their maximum effort jointly and as much as possible in order to teach employees to observe discipline and ethical behavior and prevent them from committing offence through teaching/ making them aware to act in a well disciplined manner or in order to advise and train them before committing an offence.

B. The Undertaking shall take disciplinary measure against an employee for the purpose of:

- Correcting the employee from his offence ,

- Preventing other employees from committing a similar offence,

- Controlling the work environment not to be abused by some, or

- Maintaining good work culture in the Undertaking.

C. The necessary information should be presented and investigated before taking a disciplinary measure against any employee. In addition, before the concerned supervisor makes a decision, the immediate supervisor of the concerned employee should carefully investigate the offense, the seriousness of the offence, behavior of the employee prior to the commission of the offence and the objective conditions that caused the offence.

D. In order to make the work activities to be managed with the appropriate discipline, the Undertaking can take various disciplinary measures as shown in this Collective Agreement through giving verbal/oral warning and advice, issuing letters of written warning, salary fines, suspension from work for a given time and dismissal from employment.

E. The penalty shall be cancelled where it is confirmed that the disciplinary measure was taken without justifiable reason.

28.3

Types of Disciplinary Measures

28.3.1. Oral/ Verbal Warning

A. "Verbal Warning" shall mean an oral reprimand by his Supervisor or by a higher level supervisor specifically stating the facts for which the employee is being reprimanded and quoting the relevant provisions of this Agreement or directives of the Undertaking which the employee has violated.

B. Any employee who commits simple offences that consequences verbal / oral warning as per this Collective Agreement shall be given oral/ verbal warning by his immediate supervisor.

C. Immediate supervisor of the employee shall keep record of the oral warning given by stating the date of the offence, the facts and issues involved in the offence and the article of the Collective Agreement violated in any way convenient.

28.3.2. Written Warning

"Written Warning"_shall mean a letter addressed to the employee written by his Supervisor, specifically stating the facts for which the employee is being reprimanded and quoting the relevant article of this Agreement or directives of the Undertaking which the employee has violated.

28.3.3. Fine

A. "Fine” shall mean a penalty which takes the form of deducting salary for breach or violation of any of the offences enumerated in Appendix I of this Agreement.

B. Fines imposed during the first fifteen (15) days of any month shall be deducted from the employee's salary for the said month and fines imposed after the fifteenth day of any month shall be deducted from the salary of the following month.

28.3.4. Suspension from Work

"Suspension" means the a disciplinary measure in which an employee is suspended from work and salary as a result of the offence he committed as provided in this Collective Agreement.

28.3.5. Suspension for Investigation

"Suspension for Investigation”_shall mean a measure by which an employee is suspended from work per the provisions of this Agreement for the maximum of 30 working days.

28.3.6. Termination

"Termination” means the measure in which the Undertaking ends the Contract of employment with the employee as per the Proclamation and this Collective Agreement.

28.4.

Execution of Disciplinary Measures

28.4.1. Limitation Period

Except for offences entailing termination of employment contract, when the Undertaking confirms that an employee has committed the offence listed in the Appendix I, it can impose disciplinary measures within 10 working days. However, if the nature of the offence is such that it cannot be known immediately or if it needs further investigation, the Undertaking shall impose disciplinary measures within five (5) working days from the date the commission of the offence is confirmed.

28.4.2. Application of Punishment

1. All Disciplinary Measures taken against an employee, except verbal warning, shall be communicated to him in writing by his supervisor, specifically stating the facts, the relevant provisions of the Agreement or the Undertaking's policy/ directives violated, and the measures taken against him. The copy of this will be documented in the personal file of the employee.

2. Where a dismissal action/termination measure is taken, if the Undertaking can't issue the termination letter to the employee due to his refusal to sign and accept the letter or where he can't be found or disappeared or when the Undertaking can't give the letter in person due to the nature of the offence; the termination letter shall be posted for 10 calendar days in an open place on a notice board around the place where the employee works. A Memo to File note shall be attached on the copy of the letter stating that it is posted and same will be filed in the personal file of the employee.

3. A. An employee who committed or is suspected to have committed an Offence that needs further investigation and warrants automatic termination may be suspended up to 30 working days with pay if the supervisor believes that keeping such employee will create inconvenience for the investigation or may result in additional problem to the operation. The suspension letter shall be approved by the Vice President or Executive Officer concerned.

B. The case of a suspended employee shall be forwarded through Labor Relations department to the ad-hoc Discipline Committee jointly established by the Union and the Undertaking. This Committee will have representatives designated both by the Undertaking and the Union in 3:2 ratio and the Chairperson will be elected jointly.

C. Upon reviewing the case submitted to it, the Discipline Committee shall submit its recommendations to the Chief Executive Officer (CEO) as to the disposal of the case within 10 days from the receipt of the case.

D. In case the Committee fails to submit its recommendations for any reason within the time stipulated above, the case shall be forwarded to the Chief Executive Officer (CEO) for his final decision.

E. The Chief Executive Officer (CEO) shall have the power to endorse, modify or completely reverse the opinion of the Discipline Committee and render a decision he thinks appropriate for the case.

F. under this provision, an employee shall be put on suspension status for more than 30 working days. The case of a suspended employee will be executed per the final decision of the Chief Executive Officer.

4. The employee who is suspended or subjected to termination as per this Collective Agreement shall return his Company ID card and security pass upon receiving the letter. In addition, the employee shall not have the right to keep or use the property of the Undertaking which are found under his possession in whatsoever way.

5. A suspended employee shall be entitled to all the rights and benefits that other employees are entitled to during the suspension period. But, such an employee is not entitled to ticket benefits for himself. However, the ticket benefits regarding his eligible family members will remain unaffected.

Chapter Five Miscellaneous Provisions

Article 29 Disputes in relation to Interpretation or Implementation

1. Any disputes between the parties hereto regarding the interpretation or application of this Agreement will be settled through consultation meetings and discussions between the Undertaking and the Union.

2. If not settlement can be reached between them, the dispute shall be settled in accordance with the Proclamation.

Article 30 Repealed Agreements

1. The 9th Collective Agreement is fully repealed and replaced with this Agreement.

2. This is the only comprehensive and sole agreement between the Undertaking and the Union. Therefore, all the written agreements made previously between the Undertaking and the Union, the amendments made to the 9th Collective Agreement and any understandings of the parties that were considered as an integral part of such agreement and all the procedural rules, standards and customary practices issued based on the 9th Collective Agreement so far are repealed and replaced entirely with the present Collective Agreement.

Article 31 Legally Prevailing Version

In case there appears any variance between the Amharic and English versions of this Agreement, the Amharic version shall prevail and have a legally binding effect. 

Article 32 Validity Period of the Agreement

This Agreement shall remain valid for three consecutive years effective from the date it is registered as per the relevant law.

We, the parties hereto have agreed, after due process of collective bargaining on the above stipulated conditions of work, work procedure and various provisions and to implement it and we have signed the agreement herein below.

Signed

Tewolde GebreMariam

Ethiopian Airlines Chief Executive Officer

May 23/2012 Date and seal

Seal

Ethiopian Airlines

Wondwosen Getaneh

Ethiopian Airlines Basic Trade Union Chairperson

May 23/2012 Date and seal

Seal

Ethiopian Airlines Basic Trade Union

Witnesses:

From the Undertaking's side:-

1.Elizabeth Getachew - signed

2.Wasihun Asres - signed

F

rom the Union's side:-

1.Misale Getahun - signed

2.Fikade Ancho - signed

Seal

The Federal Democratic Republic of Ethiopia Ministry of Labor & Social Affairs

Appendix I: Disciplinary Offences, Types of Measures and their Application

General Principle

The Undertaking takes any disciplinary action up to termination against an offending employee only when it firmly believes as to the conclusion of the offence or finds a justifiable reason convincing the Undertaking that the employee had committed the offence.

Section 1: Major Disciplinary Offences that warrant automatic Dismissal without Notice & the Disciplinary Actions

Sub-Section A: Offences that Result in Termination Without Notice

The Undertaking shall take the measure to dismiss the employee from employment without prior notice against any employee who commits any one of the following grave disciplinary offences:-

No.	Type of Offence
1	Mislead or cheat the Undertaking by assuming/submitting false/forged /incorrect information during employment or when same is discovered that the employee has done so later on
2	Intentionally change, or remove, erase or tear any document and evidence submitted to or that of the Undertaking or when same is discovered that he has done so
3	Submit to the Undertaking or any institution or organ which has a working relationship with the Undertaking any false/forged document, information, evidence, ID card, recommendation or certificate or mislead or provide misleading information to them to benefit oneself or a third party
4	Transfer or secure a pass or attempt to secure the pass for free and reduced rate transportation to non- eligible family members or other persons not specified in the Undertaking's regulations governing free and reduced rate transportation(specially under the MP & PM) or transport or attempt to transport other person's goods using his special privilege and pass or receive payment for cost of transportation of such goods or attempt to receive such payments using his special privilege for transportation
5	Operate/move or drive any motor vehicle or motorized equipment of the Undertaking without having a valid driving license
6	i. Absence from work for 7 consecutive working days without explicit approval of the Undertaking or without a justifiable reason; or ii. Absence from work for a total of 10 working days within one month or for a total of 30 working days within any 12 months period without justifiable reasons; or iii. if Undertaking learns that the employee is detained and will serve a punishment of six(6) months or more imprisonment being criminally convicted or is to remain in prison for six (6) months or more term without getting a court judgment due to any reason; or iv. Where an employee is sentenced for more than 30 days prison term as a result of a theft/pilferage committed within the premises of the Undertaking.
7	Commit any serious offence/action that affects the goodwill and image of the Undertaking or any serious or grave shameful act that embarrassed the Undertaking, when it is so proved
8	Trying to manipulate the data/information or request for or take a bribe by intending to benefit oneself or a third party regarding ticketing and reservations or any related confirmation works, when so proved
9	Sexually harass or attempt to harass his co-worker employee or a client/customer of the Undertaking
10	Trying to inflict or inflicting a physical assault or threat the life of a customer of the Undertaking in the premises of the Undertaking, except for self- defense, or failure to take the measures that the Undertaking issues for the protection of the safety and comfort of its customers or preventing others from taking them or causing obstructions and damages
11	Instigate, lobby and organize employees for a strike or any act involving such grouping activities, intending to influence for a personal or common outcome and when such action is confirmed by the Undertaking
12	Being found collecting or circulating a petition that affects the industrial peace in the premises of the Undertaking or distributing any text of such content using the information network & internal IT system of the Undertaking without securing permission from the Undertaking or petitioning without the lawful authorization from the Labor Union
13	Misuse, misappropriate or embezzle the funds or property of the Undertaking or those under the custody of the Undertaking or those that may come to the access of the employee because of the Undertaking's working relationships or steal, hide or use for self or others such fund or property or being caught while attempting or doing such acts or be accomplice or act in breach of trust or use the property or premises of the Undertaking for any illegal purposes
14	Where it is proved after the necessary investigation or where the Undertaking has sufficient reason to suspect that employee has received, facilitated the transfer of or gave a bribe to and from employees or trainees or any individual or organization which has a work relationship with the Undertaking or involved in such corruption related offences
15	Cause any violence, brawl or quarrel or physically attack on any person in the premises of the Undertaking, except in case for self defense
16	Use the property or premises of the Undertaking for illegal purpose or allow others to use same for such purposes
17	Conspire or independently act or attempt to directly or indirectly damage or defame the Undertaking or negligently engage in acts that endanger the property of the Undertaking or the person of the Undertaking's customer or employees or engage in an activity harmful to the Undertaking's working relationship or attempting to result in such
18	Fail to observe written warnings or instructions, or fail to apply existing standards and understood practices, which have been issued or practiced for the safety of employees or the Undertaking, the disregard of which causes or could have caused serious damage and when such offense is proven by the Undertaking
19	Smoking or lighting fire in specifically labeled or restricted areas or in sensitive areas where fires and explosions are likely to happen, when proven by the Undertaking
20	Working or allowing others to work on electrical equipment and wiring aircraft or operating aircraft equipment, ground equipment or machinery without the proper training or adequate experience or securing prior approval or the appropriate authorization
21	Transporting or carrying of unauthorized parcel or any parcel the contents of which are not known to him
22	Carrying firearms in the premises without authorization of the Undertaking
23	Reporting to work under the influence of legally prohibited drug which will impair mental capacity or being found keeping such drug in the premises of the undertaking
24	Being found drunk in the work area
25	Using or being found using the password of other employee for the purpose other than the Undertaking's work
26	Deceitful or fraudulent conduct in carrying out his duties (If proved after due investigation)
27	Slow down a work by any number of workers in reducing the year normal output on the year normal rate of work or the temporary cessation of work by any number of workers acting in concert in order to persuade Undertaking to accept certain labor conditions in connection with a labor dispute or to influence the outcome of the dispute
28	Submit false documents and evidences to obtain the free or reduced ticket for third party against the internal regulations of the Undertaking
29	Trespassing the laws of Ethiopia or other country by employee or his family by using free or reduced air ticket
30	Committing any one of the offences besides the offences specially listed in this Agreement that warrant in termination as provided in the Proclamation

Sub Section B: Offences that entail Termination when committed for the Second Time

No.	Type of Offence	Action for the 1st offence
1	Any action that affects or is against the interest of the Undertaking or causes conflict of interest of other similar effect but done to benefit oneself or a third party	Final written warning to discontinue the work
2	Misuse of Sick leave days granted by a physician to attend other personal matters	Suspension from work for 15 days
3	Refusing transfer from one station/ work area to the other station/work area without there being a justifiable reason	Suspension from work for 10 days
4	Allow an unauthorized person to enter or reside in the premises or buildings of the Undertaking while working at the security point assigned (when the offence is confirmed)	Suspension from work for 10 days

Sub-Section C: Offences that Cause Termination on the Third Time

No	Type of Offence	1st Offence	2nd Offence
1	Gambling or betting for money on the Undertaking's computer or an any other way in the premises of the Undertaking and during duty hours	5 days pay Fine	10 days pay Fine
2	Failure to adhere to security and safety measures and procedures adopted by the Undertaking or availed to the employee and which are within his capabilities A.Without causing damage B.Causing damage	5 days pay fine Termination	20 days suspension from work
3	Permitting others to use one's own, his family members or other employee's , identification cards or others to use the company logo A.Without causing damage B.Causing damage	5 days pay fine Termination	1 0 days suspension from work
4	Violation of cleanliness and hygiene regulations by Catering employees	5 days pay fine	10 days pay fine
5	Divulging telephone conversations or opening confidential mails or documents or communications or disclosing activities or flights or other Secrets to third parties or unauthorized disclosures	5 days pay fine	10 days suspension from workReporting to work under the influence of alcohol
6	Reporting to work under the influence of alcohol	5 days suspension from work	15 days suspension from work
7	Altering one's own or punching another employee's time card	15 days suspension from work	30 days suspension from work
8	Selling or transferring to third party the safety devices, equipment or company uniforms provided by the Undertaking	10 days suspension from work	20 days suspension from work
9	Being subjected to serious complaint of passenger/customer or failure to show the necessary respect for customers in any way or omitting deceitful/improper action	10 days suspension from work	15 days suspension from work

Sub-Section D: Offences that entail Termination at Fourth Time of their Commission

No.	Type of Offence	1st Offence	2nd Offence	3rd Offence
1	Failure to punch using time card or to properly use the attendance form or control sheet, machine or system that implemented by the Undertaking	Verbal Warning (unless the supervisor verifies the employee's presence)	Written warning	1 day pay fine
2	Failure to carry out specific orders, written or verbal instruction guidelines or routine jobs which are understood by the employee	Written warning	2 days pay fine	5 days pay fine
3	Leaving assigned work place without a Supervisor's permission unless the nature of the work assignment requires it A. For Security Officers i. Not causing damage ii. Causing damage B. For other Employees	10 days pay fine Termination Written Warning	15 days pay 15 days pay fine 2 days pay fine	20 days pay 20 days pay fine 3 days pay fine
4	Failure to do work assigned in an efficient and workman-like manner in accordance with the methods and standards required	Written Warning	3 days pay fine	5 days pay fine
5	Littering of work area or eating at unauthorized place	Verbal warning	Written warning	2 days pay fine
6	Refusal to accept letter of warning or fine or sign on the discussed and final draft of performance appraisal form or KPI (after the final decision	1 day pay	2 days pay	3 days pay
7	Refusal of inspection while on premises by security Guards or other authorized personnel	1 day pay	2 days pay	3 days pay
8	Unauthorized entry into restricted area or areas which are properly labeled as no ending	Written warning	2 days pay	4 days pay
9	Involving in any quarrel or disturbance that happened in the premises of the undertaking but being responsible for such happenings	2 days pay	3 days pay	5 days pay
10	Indecent or immoral conduct in the premises of the Undertaking or outside the premises while in the Company Uniform	2 days pay	3 days pay	4 days pay
11	Carelessness in use of or abuse of machines, motorized equipments and other property, outside of the standards and procedures, without due care and for a purpose other than the work of the Undertaking	2 days pay	3 days pay	4 days pay
12	Failure to immediately report any mistake that occurred in the assigned work to supervisor A.Not causing damage B.Causing damage	3 days pay Termination	4 days pay	5 days pay
13	Failure to report an accident in which an employee or the Undertaking's property is involved a.without causing damage b.causing damage	3 days pay Termination	4 days pay	5 days pay
14	Unauthorized use of bulletin boards or issuing or posting notice without prior permission by the Undertaking	3 days pay	5 days pay	10 days suspension
15	Disobedience to published or clear verbal instructions or direction issued by the undertaking or Supervisor	2 days pay	5 days pay	7 days pay
16	Any mishandling of customer's goods A.Not causing damage B.Causing damage	3 days pay 30 days suspension	10 days suspension Termination	1 5 days suspension
17	Sleeping during working hours a.for security officers b.other employees	5 days pay Written warning	10 days suspension 2days pay	20 days suspension 3 days pay
18	Deliberate omission or concealing of pertinent facts or information leading to a faulty performance a.not causing damage b.causing damage	5 days suspension Termination	10 days suspension	20 days suspension
19	Remove, delete, take, copy, change, alter, conceal, destroy, facts or documents, from the Undertaking's files Including personal files, information on computers or deliberately not recording or omitting or falsifying required pertinent facts or information or events or activities a.not causing damage b.causing damage	5 days pay Termination	10 days suspension	20 days suspension
20	Negligence in assigned duties, which endangers lives or valuable equipment or cause substantial or cause substantial cost. a.not causing damage b.causing damage	1 0 days suspension Termination	20 days suspension	30 days suspension
21	Using the Undertaking's property for theft or fraudulent action, or changing, damaging or tampering or trying to use the 'DATA' of the Undertaking for the benefit of a 3rd party through unauthorized use of computerized resources and other related electric equipments of the Undertaking or configuring computers or committing or attempting any act that affects the computer network of the Undertaking A.Not causing damage B.Causing damage	1 0 days suspension Termination	10 days suspension	30 days suspension
22	Deliberate action to endanger cooperation and harmony at work a.not causing damage b.causing damage	3 days pay Termination	5 days pay	10 days pay
23	Being found working at other works or functions in office during duty time not related with his work without permission	Written warning	3 days pay	5 days pay
24	Failure to carry out the work assigned to the employee while having the competence to do it.	Written warning	5 days pay	10 days pay

Sub-Section E: In case grave offences which are not covered/ listed in this Collective Agreement, the Undertaking shall take the measure that it deems appropriate as per the decision to be reached through discussions made between the Undertaking and the Union from time to time depending on the gravity of the case.

SECTION II: Disciplinary Measures to be taken due to Absence or Late Reporting

Sub-Section A: Unjustifiable Absence

1) Unless the employee is absent for totally 10 or more working days within 1 month period without justifiable reason, the following disciplinary measure shall be applicable.

No	Offence	1st Offence	2nd Offence	3rd Offence	4th Offence
1	Absence from half to 1 working day	Written warning	1 day pay	3 days pay	5 days pay
2	Absence from two to three consecutive working days	2 days pay	3 days pay	5 days pay	10 days pay
3	Absence from four to seven consecutive working days	5 days pay	10 days pay	15 days pay	20 days pay

2) Commission of an offence of absence from work four (4) months after commission of a similar offence shall be considered as a first offence. Commission of such any offence listed under Sub-Section A, Items 1 and 2 more than four (4) times within a period of four (4) months shall be treated as follows provided that the employee has not been absent for a total of thirty (30) working days within a year.

No	Offence	1st Offence	2nd Offence	3rd Offence	4th Offence
1	Absence from work for more than 4 times without justifiable reason from half day to 2 consecutive working days within 4 months period of time	7 days suspension	10 days suspension	15 days suspension	2 days suspension ( where an employee absent himself for 30 working days within 12 months period shall be terminated)
2	Absence from work for more than 4 but less than 7 consecutive working days without justifiable reason within 4 months period of time.	10 days suspension	15 days suspension	25 days suspension	30 days suspension

Sub- Section B: Late Reporting cases without Justifiable Reason

Unless the employee reports late due to the recognized transportation delay of the Undertaking and it is proved to be so, the employee shall be subjected to the following disciplinary measures if he reports late to work without justifiable reason.

Type of Offence	1st offence	2nd offence	3rd offence
i. Lateness up to 15 minutes	Verbal warning	Written warning	1 day pay
ii. More than 15 minutes lateness	Written warning	Salary fine of the working hours missed	1 day pay

Sub- Section C: Frequently Late Reporting cases without Justifiable Reason

If an offence listed in sub-section B above is committed three (3) months after an earlier commission of a similar offence, it shall be considered as a first offence. However, where the employee reports late more than 3 times in a given 3 months period, the following will actions will be taken,

Type of Offence	1st offence	2nd offence	3rd offence
i. Reporting late for more than 3 times within 3 months period of time	2 days pay	3 days pay	5 days pay

Note:

A.If the employee is absent due to justifiable reason, his salary shall be deducted for the time/day he was absent only. However, where found it necessary, his supervisor can allow him to compensate his lost time due to his absence.

B. If the reason for absence of the employee is not justifiable, he shall not be paid salary in addition to the fine.

SECTION III: Additional Disciplinary Measures Applicable to Cabin Crew Members and Flight Technicians

The following provisions shall apply only to crew members and Flight Technicians. Commission of offences not covered under this Section shall be handled in accordance with Appendix I, Sections A, B & C above as appropriate.

No	Type of Offences	1st Offence	2nd Offence	3rd Offence
1	Late reporting of 1 5 to 30 minutes not affecting a flight's scheduled departure time.	Verbal Warning	Written Warning	1 day pay
2	Late reporting of over 30 minutes not affecting a flight's scheduled departure time	Written Warning	1 day pay	2 days pay
3	Causing a flight delay of 5 to 15 minutes because of late reporting	1 day pay	2 days pay	3 days pay
4	Causing a flight delay of 16 to 30 minutes because of late reporting	2 days pay	3 days pay	4 days pay
5	Causing a flight delay of over 30 minute because of late reporting	3 days pay	4 days pay	10 days pay
6	Deliberate action causing embarrassment to the Company a.Not Resulting in serious harm. b.Resulting serious harm	3 days pay Termination	5 days pay	10 days pay
7	Failure to take a scheduled flight	4 days pay	10 days pay	15 days pay
8	Sleeping while on duty	5 days pay	10 days pay	Termination
9	Refusal to take a scheduled flighty without valid reason	15 days suspensions	Termination
10	If found to have taken liquor 12 hours prior to flight duty	20 days suspension	30 days suspension	Termination
11	Use if liquor while on flight	Termination

SECTION IV: Period of Limitations and Repeated Commission of Offences

1. Where an employee subjected to a disciplinary measure due to committing offences that are listed in Appendix I, Section I, sub-section B,C and D commits the same offence after the lapse of the limitation period shown below, the offence shall be considered as first offence.

No	Type of Offences	Period of Limitation
1	Appendix I, Section I, Sub Section (B) as a whole	1 year
2	Appendix I, Section I, Sub Section (C) as a whole	9 months
3	Appendix I, Section I, Sub Section (D) as a whole	6 months

2. Repeated Commission of Offences Listed in Appendix I, Section I and Section III.

Any employee who committed the offences shown in Appendix I, Section I, Sub Section (B) above for the second time, or those shown in Sub Section (C) for the 3rd time or that shown in Sub-Section (D) above and Section III above for the 4th time shall be terminated from work.

SECTION V: Suspension Period Count

A. Suspension period shall be counted in calendar days.

B. Any suspended employee shall report to work on the next working day after the end of the suspension period.

SECTION VI: Mitigation of Disciplinary Penalties

1. Disciplinary actions/measures enumerated in this Appendix I are maximum penalties. However, lesser disciplinary measures can be taken by the Supervisor for a good and justifiable cause.

2. At the time of his performance review, an employee shall be given a letter indicating any improvement he made in connection with an offence he committed in the past. An employee whose improvement has been written shall not be affected during promotional competition by the previous offence.

APPENDIX II: LIMIT OF INDEMNITY (MEDICAL AID SCHEME)

A. The Undertaking shall continue to carry the Medical Insurance scheme with the following exclusion; when and if prescribed by a duly qualified medical practitioner.

EXCLUSIONS

Benefit under this section is not payable in respect of:-

A. Hearing aids or Cosmetic Surgery or the obtaining of dentures of eye glasses, except as provided for in Article 11.4.3 of the Agreement.

B. Injury or disablement directly or indirectly caused or contributed by accident of any nature or invasion or whilst engaged or taking part in military, naval or air force services or operations.

C. Any expenses for which the member has been be reimbursed from any form of Insurance or any other source except in respect of an excess of expenditure beyond the amount recovered from such Insurance or other source.

D. Expenses incurred in connection with treatment not undertaken by or under direction of insured Undertaking's Doctor. However, if such expenses incurred in connection with a treatment received during holiday or after office hours, provided treatment is undertaken by medical practitioner designed by the Company, it is admissible.

E. Any contingency arising whilst any Insured Person is outside the limit of ETHIOPIA , but this limitation on shall not apply to:-

1. Any Insured person temporally abroad on holiday or business.

2. Any Insured Person going abroad for the purpose of Medical Treatment when only authorized by a Medical Board and approved by the Ministry of Health.

Appendix III: List of Positions excluded from the scope of the Collective Agreement

Position Title

1. C.E.O

2. COO, CFO,CCO, All SVP's & VP's, General Counsel, Assistant General Counsel,

CIO, Chief IT Security Officer and other equivalent positions.

3. Ethics Liaison Unit Head

4. All Directors

5. All Managers /Project Manager

6. All Managers /Station/ Sales Traffic Managers

7. All Supervisors /Foremen

8. Fleet Captain (Chief Pilot)

9. Head Chef

10. Superintendent

11. Chief Flight Instructor

12. Chief Technical Ground Instructor

13. Chief Technical Instructor

14. Head Librarian

15. Head , Galileo Ethiopia

16. Head of Administration and Finance

17. Medical Doctor

18. Senior Project Manager Enterprise Resources Management

19. Senior Project Manager

20. Academic Dean

21. Head Administration and Services

22. Head Human Resources Development Training

23. Head Commercial & Services Training

24. Head Aviation Maintenance Training

25. Head Training Methods & Standards

Note: If the Undertaking opens a new managerial position per the proclamation which Is not included in the above list, the information will be disclosed for the Union.

Appendix IV: Limit of MAS and GPA

The new GPA and MAS as well as self Insurance plan that the Undertaking has approved since 2011 shall be as follows:

Position	MAS	GPA (For medical treatment)	GPA ( for compensation for disability and death)
All ground staff except foreign assigned staff	Birr 45,000	Birr 45,000	At least ETB 120.0 or employee's 5 years salary or Birr 500.000
Foreign assigned employees	Birr 75,000	Birr 45,000	At least 120,000 or employee's 5 years salary or Birr 500,000
Crew members	Birr 100,000	( as covered under external insurance plan, it is not stated here )	( as covered under external insurance plan, it is not stated here )
Trainees: . Ethiopians . Foreigners	Birr 7,500 Birr 10,000	Birr 7,500 Birr 10,000	( as covered under external insurance plan, it is not stated here )

For employees who have got the approval of a Medical Board for medical treatment abroad, the Undertaking shall cover their cost up to USD 10,000 (US Dollar).

Note:

1.Based on this, the Undertaking shall refund up to USD 10,000 (American Dollar) to employees who covered their own medical treatment cost in advance.

2. A. In countries where the Undertaking has a credit arrangement, the

Undertaking shall have the duty to facilitate the above stated treatment cost in advance for employees who can't afford to get treatment on their own.

B. The Undertaking shall facilitate the process as much as possible in countries where it has no credit agreement and where the medical institution is selected as per the employee's own choice.

3. The Undertaking shall try as much as possible to facilitate the condition for employees who can't travel and get their medical treatment at their own cost.

Appendix V: Employees' Grievance Submission Forms

ETHIOPIAN AIRLINES EMPLOYEES GRIEVANCE SUBMISSION FORM

FIRST STEP GRIEVANCE

This grievance shall be lodged to the Supervisor within 10 working days from the date of the occurrence of the cause for the grievance.

Name of the Employee:

Section:

ID. No.:

Cost Center:

Position or Title:

I am submitting this grievance to my immediate supervisor Mr/Mrs. .

[Name of immediatesupervisa) as follows and I expect a reply of

my supervisor as per the grievance procedure that is provided in the Collective Agreement.

Details of the Grievance of the Employee:

(Please state the reason or cause for the complaint, important dates, the violated article of the collective agreement or the rule/policy of the under taking as well as the what you expect to be done or the measure that needs to taken)

DateSignature ,

Employee

Prepare in 2 copies & submit both copies to your Supervisor

The date on which the immediate supervisor received this grievance form:

Reply of the Immediate Supervisor

Signature of the Immediate Supervisor:

Date of Reply:

Note:

1. If the grievance relates to a disciplinary measure that immediate supervisor has taken against the employee, the employee can file his complaint to next higher level supervisor.

2. The supervisor who received this complaint should respond within 5 working days from the date he received the form.

3. Any supervisor should discuss the case with the employee and all the concerned and investigate relevant evidences before giving response to the grievance.

4. This response for the grievance should be prepared in 5 copies, and the original should be issued to the employee , 1 copy to your supervisor, 1 copy to Labor Relations department , 1 copy to Ethiopian Airlines Labor Union and 1 copy to you file.

SECOND STEP GRIEVANCE

This appeal shall be lodged to the next higher supervisor within 5 working days from receipt of the reply for the 1st level grievance.

Name of the Employee:

Department

Reg. No.:

Cost Center

Employee’s Position

Date of Receipt of the reply for 1st level grievance by the employee:

To:

(Name of Next Higher Supervisor)

Being dissatisfied with the reply to my first level grievance, I hereby submit this appeal to next level.

Date

Employee’s Signature

Employee shall submit two copies of this grievance with the reply of 1st level to next higher supervisor.

Date of Receipt of this grievance by next Level/higher Supervisor:

/PTO

Signature of Next/ Higher Supervisor Date of Reply:

Note:

1.Next Higher Supervisor shall mean the one who is in a position higher than the immediate supervisor of the grieving employee.

2.Decision shall be rendered within 5 working days of the appeal

3.The Supervisor shall call the employee and all concerned persons to discuss the matter and investigate relevant evidences.

4.The next supervisor shall distribute his decision accordingly: Original shall be returned to the employee, one copy to the employee’s immediate supervisor, one copy to Labor Relations Department and one copy to Labor Union and one copy for the employee’s office file.

THIRD STEP GRIEVANCE

This appeal shall be submitted to Labor Relations Department within 5 working days from the receipt of the reply for the 2nd level grievance.

Name of the Employee:Department

Reg. No.:

Cost Center:

Employee Position :

Date the reply for 2nd level grievance is received by the employee:

Forwarded to: Labor Relations Department

We believe that the reply given at the second level grievance is not satisfactory.

Signature of the Union’s Chairperson:

Date:

(The Labor Union shall send one copy of the decisions on the 1st and 2nd level grievances with this grievance form)

Date of receipt of the form by the Labor Union:

Results of the Conciliation

/PTO

Signature of the concerned VP/SVP

Date

1.The VP/SVP concerned shall render decision on the 3rd step grievance within 20 working days from the date of receipt of the grievance.

2.The supervisor shall call the employee and all the concerned persons to discuss the matter and investigate relevant evidences.

3.The decision shall be prepared in 3 copies: one copy need to be given to the employee, one copy to the concerned VP/SVP and one copy to Labor Relations Department.